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The Lok Sabha adjourns today for a three-week recess. The Rajya Sabha is scheduled to adjourned on March 18. Here’s a brief look at the activity of Parliament this session (data till March 15): Productive Hours: The session has witnessed more than its fair share of disruptions. In the 14 sitting days, over 22 hours has been lost to interruptions in the Lok Sabha and over 26 hours in the Rajya Sabha. The number of productive hours so far is 53 and 50 hours in the Lok Sabha and Rajya Sabha respectively. [Click here to compare with previous sessions.] The session began with protests by the Opposition, putting pressure on the Government to schedule a debate on price rise. After the presentation of the Budget, the protests revolved around the petroleum price hike. The disruptions in the Rajya Sabha were on account of the Women’s Reservation Bill, which resulted in the suspension of seven MPs. On March 9 the Rajya Sabha was adjourned five times, before the passage of the Bill. Legislative business: This session, the government had listed 63 Bills for introduction, 16 pending Bills for consideration and passing and 10 pending Bills for consideration and passing if their Standing Committee reports are submitted. Other than financial business transacted, which includes passage of Demand for Grants and Appropriation Bills, the only legislation that has been passed so far is the Women’s Reservation Bill in the Rajya Sabha. The Lok Sabha also has passed one Bill that replaces an Ordinance - the Ancient Monuments and Archaeological Sites and Remains Bill. In the 14 sitting days, the House has spent 6 hours on legislative business. Question Hour: Another important aspect of parliamentary business is the Question Hour. Interestingly, the Lok Sabha rules were amended before the start of this session to ensure that the absence of MPs does not result in the collapse of Question Hour. However, the amount of time spent on questions in both Houses this session has remained under 5 hours.
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.
