JPC asks industry to estimate financial hit from frequent polls

New Delhi: The Joint Parliamentary Committee (JPC) on 'One Nation One Election' has asked the industry to quantify the impact of frequent elections on business operations, labor availability, investments decisions and government clearances.

A detailed survey has been sent by industry bodies like CII to their members across the country that requires details on the number of days of work that have been disrupted in the last election cycle of Lok Sabha, state and local body polls and asks companies to assign an approximate value to the disruptions in business.

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The survey asks for rupee values of disruption-productivity loss, project delays, cost escalation, financing cost, and lost business opportunities-then totals it into a "total annual impact" figure, in an attempt to put together a national price tag on frequent elections.

It also asks for employee man-days lost to voting-related absenteeism, travel restrictions and security curbs, plus an estimated cost impact for those lost days. Companies across sectors - tourism, agriculture, education, infrastructure - have been asked to estimate per election cycle revenue or cost impact in crores. For the hospitality sector, it even asks for the impact of 'dry days', when alcohol is not allowed to be served due to polls, counting or announcement of results.

The survey also focuses on Model Code of Conduct induced delays in approvals, disbursements and government decisions that impact the industry. It seeks rupee values for tenders postponed or cancelled and government payments delayed, plus the extra financing costs incurred. In particular, it asks which approvals - land acquisition, environment, building, utility connections - were delayed and for how many days.

Sharp questions have also been directed on the impact of frequent elections on long term plans. "To what extent do multiple, staggered elections across states affect your business planning and investment decisions?" it asks.

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Annual decline in productivity due to the workforce taking election-related leave is to be shared by all sectors, while the education sector has been asked to share the impact of teachers being put on poll duty and premises taken over the polls.

Companies have been asked to share what percentage improvement in project execution and business efficiency they can expect from simultaneous elections, as well as the estimated monetary benefit.