The Monsoon Session of Parliament begins tomorrow and will continue till August 10, 2018.  It is scheduled to have 18 sittings during this period.  This post outlines what is in store in the upcoming session.

The session has a packed legislative agenda.  Presently, there are 68 Bills pending in Parliament.  Of these, 25 have been listed for consideration and passage.  In addition, 18 new Bills have been listed for introduction, consideration, and passage.  This implies that Parliament has the task of discussing and deliberating 43 Bills listed for passage in an 18-day sitting period.  Key among them include the Bills that are going to replace the six Ordinances currently in force.  The government is going to prioritize the passage of these six Bills to ensure that the Ordinances do not lapse.

Besides the heavy legislative agenda, the session will also witness the election of a new Deputy Chairman for the Upper House.  Former Deputy Chairman, P.J. Kurien’s term ended on July 1, 2018.  The upcoming election has generated keen interest, and will be closely watched.  The role of the Deputy Chairman is significant, as he quite frequently oversees the proceedings of the House.  The Deputy Chairman is responsible for maintaining order in the house and ensuring its smooth functioning.  The preceding Budget Session was the least productive since 2000 due to disruptions.  Rajya Sabha spent only 2 hours and 31 minutes discussing legislative business, of which 3 minutes were spent on government Bills.  In this context, the role of the Deputy Chairman is important in ensuring productivity of the house.

Another key player in ensuring productivity of Parliament is the Speaker of the Lower House.  In Budget Session 2018, the Speaker was unable to admit a no confidence motion.  This failure was based on her inability to bring the house in order.  Repeated disruptions led to the passage of only two Bills in Lok Sabha.  The same session also saw disruptions by certain MPs demanding special category status for Andhra Pradesh.  Between the last session and the upcoming session, a key development includes the resignation of five YRSC members, reducing the strength of MPs from Andhra Pradesh to 20.  In light of this, one has to wait to see whether the demand for special category status for Andhra Pradesh will be raised again.

Coming to the legislative agenda, of the six Bills that aim to replace Ordinances, key include: (i) the Fugitive Economic Offenders Bill, 2018, (ii) the Criminal Law (Amendment) Bill, 2018, (iii) the Insolvency and Bankruptcy Code (Amendment) Bill, 2018, and (iv) the Commercial Courts (Amendment) Bill, 2018.  The Fugitive Economic Offenders Bill aims to confiscate the properties of people who have absconded the country in order to avoid facing prosecution for economic offences.  The Fugitive Economic Offenders Bill, 2018 was introduced in Lok Sabha in March 2018.  Subsequently, an Ordinance was promulgated on April 21, 2018.  The Criminal Law (Amendment) Bill increases the punishment for rape of women, and introduces death penalty for rape of minor girls below the age of 12.  The Insolvency and Bankruptcy (Amendment) Bill aims to address existing challenges in the Insolvency and Bankruptcy Code.  It amends the Code to include homebuyers as financial creditors in the insolvency resolution process.

There are some Bills that have been passed by one house but are pending in the other, and some that are pending in both the houses.  These cut across various sectors, including social reform, education, health, consumer affairs, and transport.  Some key reformative legislation currently pending include the Transgender Persons (Protection of Rights) Bill, 2016, and the Triple Talaq Bill.  The Triple Talaq Bill, passed on the day of introduction in Lok Sabha, is pending in Rajya Sabha.  When introduced in Rajya Sabha, the opposition introduced a motion to refer the Bill to a Select Committee.  In the forthcoming session, it remains to be seen whether the Bill will be sent to a Select Committee for detailed scrutiny or will be passed without reference to a Committee.  Other pending legislation include the the National Medical Commission Bill, 2017, the RTE (Second Amendment) Bill, 2017, the Consumer Protection Bill, 2018 and the Specific Relief (Amendment) Bill, 2017.

Of the 18 new Bills listed for introduction, all have been listed for consideration and passage as well.  These include the Trafficking of Persons Bill, 2018, the DNA Technology (Use and Application) Regulation Bill, and amendments to the RTI Act.  Since they have been listed for passage, it remains to be seen whether these Bills are scheduled to be scrutinized by a Parliamentary Committee.  In the 16th Lok Sabha, only 28% of the Bills introduced in Lok Sabha have been referred to Committees.  This number is low in comparison to 60% and 71% of the introduced Bills being referred to Committees in the 14th and 15th Lok Sabha, respectively.  Committees ensure that Bills are closely examined.  This facilitates informed deliberation on the Bill, and strengthens the legislative process.

Besides taking up the legislative agenda, an important function of Parliament is to discuss issues of national importance and hold the government accountable.  In the previous session, the issue of irregularities in the banking sector was repeatedly listed for discussion.  However, due to disruptions, it was not taken up.  Budget Session 2018 saw the lowest number of non- legislative debates since the beginning of the 16th Lok Sabha.  In the upcoming session, it is likely that members will raise various issues for discussion.  It remains to be seen whether Parliament will function smoothly in order to power through its agenda, and fulfil its obligation to hold the government accountable.

Government owned Oil Marketing Companies (OMCs) raised the price of petrol by Rs 6.28 per litre on May 23, 2012.  After the inclusion of local taxes, this price hike amounts to an increase of Rs 7.54 per litre in Delhi.  India met 76 per cent of its total petroleum requirement in 2011-12 through imports.  Petrol prices have officially been decontrolled since June 2010.  However, it has been argued by experts that prices of petroleum products have not been increased sufficiently in order to pass on cost increases to consumers.  The inability to pass on international crude prices to consumers has affected OMCs more in recent months due to the depreciating rupee, which has further increased their losses.  The total under recoveries faced by OMCs for diesel, PDS kerosene and domestic LPG for 2011-12 stands at Rs 138,541 crore.  It was recently announced that the OMCs will receive Rs 38,500 crore from the Ministry of Finance to partially compensate for the high under recoveries. The prices of diesel, LPG and kerosene, which are responsible for the large under recoveries, are unchanged.  Experts suggest that the price hike would have a limited impact on inflation, since petrol has a weightage of around 1 per cent on the Wholesale Price Index, whereas diesel has a weightage of around 4.7 per cent.  The petrol price hike is unlikely to have an impact on the fiscal deficit, since petrol prices are technically deregulated.  Reports suggest that a panel of ministers is due to meet on Friday to discuss diesel, kerosene and LPG prices. In a 2010 report, the Expert Group on "A Viable and Sustainable System of Pricing of Petroleum Products" (Kelkar Committee) observed that given India’s dependence on imports and rising oil prices, domestic prices of petroleum products must match international prices.  It stated that price controls on diesel and petroleum in particular had resulted in major imbalances in consumption patterns across the country.  This had also led to the exit of private sector oil marketing companies from the market, and affected domestic competition.  Its recommendations included the following:

  • Since petrol and diesel are both items of final consumption, their prices should be market determined at both the refinery gate and the retail level.
  • An additional excise duty should be levied on diesel cars.
  • A transparent and effective distribution system for PDS kerosene and domestic LPG should be ensured through UID.
  • Price of kerosene and domestic LPG should be increased by Rs 6/litre and Rs 100 per cylinder respectively.  The prices should be periodically revised based on growth in per capita agricultural GDP (for kerosene) and rising per capita income (LPG).

Reports suggest that a partial rollback of petrol prices might be considered soon.