Source: www.pib.nic.in Source: www.pib.nic.in

 

Yesterday the Prime Minister reshuffled his Cabinet and inducted four cabinet ministers and four ministers of state.  Since the beginning of the UPA II government, there have been three major Cabinet reshuffles and a number of minor readjustments in the portfolios of ministers. Analysing changes in the portfolios of ministers gives an insight into the churn in the political leadership of the different ministries of the government of India. Until recently there was no central online resource where information could be collated about cabinet reshuffles. The information was scattered between the websites of the President, the Prime Minister and the Press Information Bureau. Since 2012, the Cabinet Secretariat has started putting details about changes in the portfolio of the council of ministers in the public domain. However analysing this information becomes difficult as the information is split into different files and details about the Cabinet reshuffle do not go back till 2009. We have tried to collate data about changes in Cabinet portfolios since May 2009, so that it becomes easily accessible and can be analysed by interested individuals.  The raw data file can be accessed here. This data could be analysed to see which Ministers have shifted across ministries or the average length of tenure of Ministers in different ministries. If you spot interesting trends in the raw data above, please share them with us on twitter@prslegislative We have done a preliminary analysis of the data to see which ministries have had the most changes in Cabinet Ministers since May 2009: - Railway Ministry portfolio has been held by six different Cabinet Ministers [Mamata Banerjee, Dinesh Trivedi, Mukul Roy, C P Joshi (twice), Pawan Kumar Bansal and now Mallikarjun Kharge] - Ministry of Law and Justice, Corporate Affairs and Science and Technology: Four Cabinet Ministers. - Ministry of Petroleum and Natural Gas, Civil Aviation, Rural Development, Tourism and Youth and Sports:  Three Cabinet Ministers. - Ministries like Finance, Home, External Affairs, Communications and Information Technology, Human Resource Development:  Two Cabinet Ministers. - Ministries like Agriculture and Non Conventional Energy Sources have the same Ministers from May 2009. This data also helped us put together a brief chronology of Cabinet reshuffles since the beginning of the term of the UPA II government:

23 & 28- May-09 Cabinet sworn in.
31-May-09 Meria Kumar resigns as Minister of Water Resources to become Speaker of Lok Sabha.
19-Apr-10 Shashi Tharoor resigns as Minister of State from the Ministry of External Affairs.
15-Nov-10 A Raja resigns as Minister of Communications and Information Technology. Kapil Sibal gets additional charge of the ministry.
19-Jan-11 First major cabinet reshuffle. Most ministries affected.
12-Jul-11 Second major Cabinet reshuffle. Dinesh Trivedi assumes charge of Railway Ministry after Mamata Banerjee, Salman Khursheed becomes Law Minister, Jairam Ramesh moves to Rural Development. New Ministers like Rajeev Shukla (Parliamentary Affairs) and Jayanthi Natarajan (Environment and Forest) get inducted.
18-Dec-11 RLD joins UPA. Ajit Singh inducted as Minister of Civil Aviation.
20-Mar-12 Dinesh Trivedi resigns and Mukul Roy becomes Railway Minister.
27-Jun-12 Pranab Mukherjee resigns as Finance Minister to fight the presidential election.
31-Jul-12 P Chidambaram moves from Home to Finance Ministry and Sushil Kumar Shinde moves from Power to Home Ministry.
22-Sep-12 Trinamool withdraws support to UPA. All TMC ministers resign. C P Joshi assumes additional charge of Railway Ministry.
28-Oct-12 Third major reshuffle. S M Krishna resigns from Ministry of External Affairs and Salman Khursheed takes over. Ashwani Kumar comes in place of Salman Khursheed in Law and Justice. Ambika Soni resigns and Manish Tiwari takes charge of Ministry of Information and Broadcasting. Ajay Maken moves from Ministry of Youth Affairs and Sports to Housing and Urban Poverty Alliviation.
21-Mar-13 DMK withdraws support. All DMK Ministers resign.
11-May-13 Ashwani Kumar and Pawan Kumar Bansal resign. Kapil Sibal takes charge of Ministry of Law and Justice and C P Joshi takes charge of Railways.
16-Jun-13 Ajay Maken and C P Joshi resign.

   

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.