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By Rohit and Jhalak Some Rajya Sabha seats will be contested over the next year. The Presidential elections are also scheduled to be held in 2012. The recent assembly elections has implications for both these elections. The Presidential elections will depend on the strenght in the assemblies, in Lok Sabha and in Rajya Sabha (which could change over the next year). Implications for Rajya Sabha Elections The composition of Rajya Sabha may undergo some changes. A total of 12 Rajya Sabha seats are up for election in 2011. This includes 6 seats from West Bengal, 3 from Gujarat and 1 each from Maharashtra, Tamil Nadu and Goa. Another 65 seats, across 18 states, go for elections in early 2012. The largest chunk of these seats comes from UP(10), followed by Andhra Pradesh(6), Bihar(6) and Maharashtra(6). Since Rajya Sabha members are elected by the elected members of the Legislative Assembly of the State, a change in the composition of the assembly can affect the election outcome. We used the current assembly compositions to work out scenarios for Rajya Sabha in 2011 and 2012. There could be alliances between parties for the Rajya Sabha elections, so we have estimated a range for each grouping (Scenario I and II) for 2012. See Notes [1] and [2].
| Parties/ Coalitions | 2010 | Scenario 2011 | Scenario 2012 | |
| I | II | |||
| UPA | 89 | 94 | 95 | 97 |
| NDA | 65 | 65 | 67 | 66 |
| Left | 22 | 19 | 14 | 14 |
| BSP | 18 | 18 | 19 | 19 |
| SP | 5 | 5 | 6 | 6 |
| AIADMK | 4 | 5 | 5 | 5 |
| BJD | 6 | 6 | 5 | 5 |
| Other parties | 18 | 18 | 20 | 19 |
| Independent | 6 | 6 | 5 | 5 |
| Nominated | 8 | 9 | 9 | 9 |
| Total | 241 | 245 | 245 | 245 |
Implications for the election of the President The President is elected in accordance with the provisions of Article 54 and 55 of the Constitution. The electorate consists of the elected members of Lok Sabha, Rajya Sabha and all Legislative Assemblies. Each MP/ MLA's vote has a pre-determined value based on the population they represent. The election is held in accordance with the system of proportional representation by means of a single transferable vote. The winning candidate must secure at least 50% of the total value of votes polled. (For details, refer to this Election Commission document). There is no change in the Lok Sabha composition (unless there are bye-elections). Position in Legislative Assemblies After the recent round of assembly elections, the all-India MLA count adds up to:
| UPA | 1613 |
| NDA | 1106 |
| Left | 205 |
| BSP | 246 |
| AIADMK | 155 |
| BJD | 103 |
| SP | 95 |
| Others | 597 |
The above numbers can now be used to estimate the value of votes polled by each coalition. See Note [3]:
| Value of votes cast | Scenario - 1 | Scenario - 2 |
| UPA | 439,437 | 440,853 |
| NDA | 307,737 | 307,029 |
| Left | 51,646 | 51,646 |
| BSP | 77,243 | 77,243 |
| SP | 38,531 | 38,531 |
| AIADMK | 36,392 | 36,392 |
| BJD | 28,799 | 28,799 |
| Others | 119,097 | 118,389 |
| Total | 1,098,882 | 1,098,882 |
| Min. to be elected | 549,442 | 549,442 |
The UPA has the highest value of votes polled but the figure is not sufficient to get its candidate elected. Assuming that there are at most three candidates with significant support (UPA, NDA, and Left/Third Front), the winner will be the one who manages to bridge the gap with second preference votes. On this factor, the UPA backed candidate is likely to hold the edge over others. Notes: [1] At present, there are four vacant seats in Rajya Sabha (1 Maharashtra, 1 TN, 1 WB and 1 Nominated). It is assumed that all these seats are filled up in 2011. [2] Three of the 11 nominated members in the current Rajya Sabha have declared their party affiliation as INC. These have been included in the UPA count in the above analysis. For the sake of simplicity, it is assumed that members who get nominated in 2011/ 12 are not aligned to any party/ coalition. [3] The above analysis is based on the assumption that the next set of assembly elections happen after the Presidential election.
Last week, oil-marketing companies (or OMCs, such as Indian Oil Corporation Limited and Hindustan Petroleum Corporation Limited) raised the price of domestic LPG in the country. [1] The price of a domestic cylinder (14.2kg) has increased from Rs 714 in January 2020 to Rs 858.5 in February 2020. This is a 20% hike in the price of a LPG cylinder. Note that this is the sixth consecutive month for which LPG prices have been revised upwards. Figure 1 shows the variation in price of a domestic (non-subsidised) LPG cylinder in Delhi over the last year.
Figure 1: Variation in price of non-subsidised domestic LPG cylinder
Sources: Indian Oil and Corporation Limited; PRS.
How is the price of LPG cylinders determined?
LPG prices are revised every month. The price is determined by public sector OMCs namely, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited, in line with the changes in the international market prices and other market conditions. [2] The international market price affects the import parity price of petroleum products (the price that importers pay for import of product at the respective Indian ports). This includes exchange rate, ocean freight, insurance and customs duty among others.
The Ministry of Petroleum and Natural Gas has stated that the recent hike in the price of LPG cylinder is due to a sharp rise in international LPG prices during January 2020 (from USD 448/Metric Tonne to USD 567/Metric Tonne). [3]
What is the difference between the price of a subsidised and non-subsidised cylinder?
The price determined by the OMCs reflects the price of a non-subsidised domestic LPG cylinder. The government modulates the effective price to provide subsidised LPG cylinders to consumers under the 'Pratyaksha Hastaantarit Laabh' direct benefit transfer (or DBT-PAHAL) scheme. [4] Under the scheme, a consumer (with annual income of up to Rs 10 lakh) can avail DBT cash-subsidy for a LPG cylinder. The beneficiaries buy LPG cylinders at market rate and subsequently receive subsidy directly in their bank accounts.
With the recent increase in price of a LPG cylinder, the government has increased the subsidy amount for PAHAL consumers from Rs. 153.86 per cylinder to Rs. 291.48 per cylinder (89% increase).3 This is done to ensure that the subsidized LPG consumers are insulated from the volatility of LPG prices in the international market. Table 1 shows the amount of subsidy provided by the government for LPG cylinder. Note that price of a subsidised cylinder has increased from Rs 494 to Rs 567 (14.8%) from February 2019 to February 2020.
Table 1: Difference between the price of subsidised and non-subsidised LPG cylinder
|
As on |
Non-subsidised cylinder |
Subsidised cylinder |
Subsidy |
|
February 2018 |
Rs 736.00 |
Rs 495.63 |
Rs 240.37 |
|
February 2019 |
Rs 659.00 |
Rs 493.53 |
Rs 165.47 |
|
February 2020 |
Rs 858.50 |
Rs 567.02 |
Rs 291.48 |
Sources: Unstarred Question No.1211, February 13, 2019, Ministry of Petroleum and Natural Gas, Rajya Sabha.
Note: Prices are at Delhi.
How many people avail the subsidy on LPG cylinders?
Currently, there are a total of 27.16 crore LPG (domestic) connections in the country.3 Of these, 26.12 crore (94%) consumers are beneficiaries under the PAHAL scheme, and therefore, can avail LPG cylinders at subsidised rates. Note that, under the scheme, a maximum of 12 subsidised cylinders per year can be availed under one connection. Further, a household cannot have more than one connection.
What is the cost of subsidy for the government?
The subsidy on domestic LPG is met through the budgetary grants of the Ministry of Petroleum and Natural Gas. In 2020-21, the government is estimated to spend Rs 37,256 crore on LPG subsidy. This includes Rs 35,605 crore for DBT-PAHAL and Rs 1,118 crore for Pradhan Mantri Ujjwala Yojana. This is an increase of 9.3% from the expenditure in 2019-20 of Rs 34,086 crore (revised estimate). Note that LPG subsidy constitutes 87% of the Ministry's total budget (Rs 42,901 crore).
Figure 2 below shows the year-wise expenditure on LPG subsidy, and as a proportion of the total budget of the Ministry from 2015-16 to 2020-21.
Figure 2: LPG subsidy over the years (2015-16 to 2020-21).
Sources: Union Budget Documents; PRS.
For more trends and analysis related to the finances of the Ministry of Petroleum and Natural Gas, see here.
[1] "LPG price hiked by Rs 144.5 per cylinder", Economic Times, February 12, 2020, https://economictimes.indiatimes.com/industry/energy/oil-gas/lpg-price-hiked-by-rs-144-5-per-cylinder/articleshow/74096745.cms.
[2] Frequently Asked Questions (FAQ), Petroleum Planning and Analysis Cell, https://www.ppac.gov.in/content/137_3_Faq.aspx.
[3] "LPG Price is Derived based on International Market Price", Press Information Bureau, Ministry of Petroleum and Natural Gas, February 13, 2020.
[4] PAHAL-Direct Benefits Transfer for LPG (DBTL) Consumers Scheme, Ministry of Petroleum and Natural Gas, http://petroleum.nic.in/dbt/whatisdbtl.html.
