What is petitioning? Petitioning is a formal process that involves sending a written appeal to Parliament. The public can petition Parliament to make MPs aware of their opinion and/ or to request action. Who petitions and how? Anyone can petition Parliament. The only requirement is that petitions be submitted in the prescribed format, in either Hindi or English, and signed by the petitioner. In the case of Lok Sabha, the petition is normally required to be countersigned by an MP. According to the Rules of Lok Sabha, "This practice is based on the principle that petitions are normally presented by members in their capacity as elected representatives of the people, and that they have to take full responsibility for the statements made therein and answer questions on them in the House, if any, are raised." Petitions can be sent to either House in respect of:

  • Any Bills/ other matters that are pending before the House
  • Any matter of general public interest relating to the work of the Central Government

The petition should not raise matters that are currently sub-judice or for which remedy is already available under an existing law of the Central Government. Petition formats can be accessed at: Lok SabhaRajya Sabha What happens to the petition once it has been submitted? Once submitted, the petition may either be tabled in the House or presented by an MP on behalf of the petitioner. These are then examined by the Committee on Petitions. The Committee may choose to circulate the petition and undertake consultations before presenting its report (For instance, the Petition praying for development of Railway network in Uttarakhand, Himachal Pradesh and other Himalayan States). It may also invite comments from the concerned Ministries. The recommendations of the Committee are then presented in the form of a report to the House. Previous reports can be accessed at the relevant committee pages on the Lok Sabha and the Rajya Sabha websites.

Reports suggest that a debt restructuring plan is being prepared for power distribution companies (discoms) in seven states - Uttar Pradesh, Punjab, Rajasthan, Haryana, Andhra Pradesh, Tamil Nadu and Madhya Pradesh.  According to some estimates, the combined outstanding debt for discoms is Rs 2 lakh crore.  Discoms have been facing heavy losses.  According to a Planning Commission Report, the cost of supplying electricity increased at a rate of 7.4 per cent annually between 1998-99 and 2009-10.  The average tariff has also increased at an annual rate of 7.1 per cent over the same period.  However, the report shows that the average tariff per unit of electricity has consistently been much lower than average cost of supply per unit.  Between 2007-08 and 2011-12, the gap between average cost and average tariff per unit of electricity was between 20 and 30 per cent of costs.

Average cost and average tariff per unit of electricity (Rs per kWh)

Year

Unit cost

Average tariff per unit

Gap between cost and tariff

Gap as percentage of unit cost

2007-08

4.04

3.06

0.98

24%

2008-09

4.6

3.26

1.34

29%

2009-10

4.76

3.33

1.43

30%

2010-11

4.84

3.57

1.27

26%

2011-12

4.87

3.8

1.07

22%

Source: “Annual Report 2011-12 on the Working of State Power Utilities and Electricity Departments”, Planning Commission State discoms have been losing money due to higher costs than revenues, as well as high transmission and distribution (T&D) losses.  The commercial losses for discoms in India (after including subsidies) increased from Rs 16,666 crore in 2007-08 to Rs 37,836 crore in 2011-12. Reports suggest that the restructuring plan being prepared will be worth Rs 1.2 lakh crore in short-term liabilities.  Half of the proposed amount would be issued as bonds by the discoms, backed by a state government guarantee.  Banks and financial institutions would reschedule the remaining Rs 60,000 crore of debt, with a moratorium of three years on payment of the principal amount.  State governments that adopt the financial restructuring plan would not recover any loans given to discoms before they start showing profits. Under a proposed transition finance mechanism, the central government would reimburse 25 per cent of the principal amount of bonds to states that fully implement the plan.  Also, states that achieve a reduction in T&D losses above a targeted level in three years may be given grants.  Newspaper reports also suggest that states will have to prepare plans for eliminating the gap between the average cost and average tariff per unit of electricity.