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The Lokpal and Lokayuktas Bill, 2011 was passed by Lok Sabha yesterday. The Bill will be discussed next by Rajya Sabha. Unlike the Lok Sabha, where the UPA government holds a majority in the House, the composition is different in Rajya Sabha. As on 28th December 2011, the total strength of Rajya Sabha is 243 members . The UPA has a combined strength of 95 members in the House, well below the 50% mark. (Of course, there will be some absent members which will change the arithmetic a bit.) The passage of the Bill thus depends on the stand taken by other political parties and their numbers in the House. Here's how the figures stack up:
Party | Numbers |
Indian National Congress (INC) | 71 |
Dravida Munnetra Kazhagam (DMK) | 7 |
Nationalist Congress Party (NCP) | 7 |
All India Trinamool Congress (AITC) | 6 |
Jammu and Kashmir National Conference | 2 |
Sikkim Democratic Front (SDF) | 1 |
Rashtriya Lok Dal (RLD) | 1 |
Total UPA | 95 |
Bharatiya Janata Party (BJP) | 51 |
Janata Dal (United) | 8 |
Shiv Sena (SS) | 4 |
Shiromani Akali Dal (SAD) | 3 |
Total NDA | 66 |
Communist Party of India (Marxist) | 13 |
Communist Party of India (CPI) | 5 |
All India Forward Bloc (AIFB) | 1 |
Total Left | 19 |
Bahujan Samaj Party (BSP ) | 18 |
Biju Janata Dal (BJD ) | 6 |
All India Anna Dravida Munnetra Kazagham (AIADMK ) | 5 |
Samajwadi Party (SP ) | 5 |
Rashtriya Janata Dal (RJD ) | 4 |
Asom Gana Parishad (AGP ) | 2 |
Bodoland People's Front (BPF ) | 1 |
Indian National Lok Dal (INLD ) | 1 |
Lok Janasakti Party (LJP ) | 1 |
Mizo National Front (MNF ) | 1 |
Nagaland People's Front (NPF ) | 1 |
Telugu Desam Party (TDP ) | 4 |
Nominated | 8 |
Independent and others | 6 |
Total | 243 |
There has been no resolution so far to the issue of assured fuel supply from Coal India Limited (CIL) to power producers. According to reports, while CIL released a model supply agreement in April 2012, so far only around 13 Fuel Supply Agreements (FSAs) have been signed. Originally around 50 power units were expected to sign FSAs with CIL. Power producers have objected to the model FSA released by CIL, particularly its force majeure provisions and the dilution of financial penalties in case of lower than contracted supply. Background The adverse power supply situation has attracted greater attention in the past few months. According to Central Electricity Authority's data, the gap between peak demand and peak supply of power in March 2012 was 11 per cent. The decreasing availability of fuel has emerged as a critical component of the worsening power supply situation. As of March 31, 2012, there were 32 critical thermal power stations that had a coal stock of less than 7 days. The gap between demand and supply of coal in the past three years is highlighted below: Table 1: Coal demand/Supply gap (In millions of tonnes)
2009-10 |
2010-11 |
2011-12 |
|
Demand |
604 |
656 |
696 |
Supply |
514 |
523 |
535 |
Gap |
90 |
133 |
161 |
Source: PIB News Release dated May 7, 2012 Coal accounts for around 56 per cent of total installed power generation capacity in India. Increased capacity in thermal power has also accounted for almost 81 per cent of the additional 62,374 MW added during the 11th Plan period. Given the importance of coal in meeting national energy needs, the inability of CIL to meet its supply targets has become a major issue. While the production target for CIL was 486 MT for 2011-12, its actual coal production was 436 MT. Fuel Supply Agreements In March 2012, the government asked CIL to sign FSAs with power plants that have been or would be commissioned by March 31, 2015. These power plants should also have entered into long term Power Purchase Agreements with distribution companies. After CIL did not sign FSAs by the deadline of March 31, 2012 the government issued a Presidential Directive to CIL on April 4, 2012 directing it to sign the FSAs. The CIL board approved a model FSA in April 2012, which has not found acceptance by power producers. According to newspaper reports, many power producers have expressed their dissatisfaction with the model FSA released by CIL. They have argued that it differs from the 2009 version of FSAs in some major ways. These include:
Most power producers, including NTPC, the country’s biggest power producer, have refused to sign the new FSA. Reports suggest that the Power Minister has asked the Prime Minister’s Office to mandate CIL to sign FSAs within a month based on the 2009 format. CIL has received a request from NTPC to consider signing FSAs based on the same parameters as their existing plants, but with the revised trigger point of 80 per cent (down from 90 per cent earlier). Underlying this situation is CIL’s own stagnating production. Various experts have pointed to the prohibition on private sector participation in coal mining (apart from captive projects) and the backlog in granting environment and forest clearances as having exacerbated the coal supply situation.