The legal angle would involve constitutional amendments that would be required to be passed before the idea could be implemented on the ground.
The ministry has, in a note sent to the "highest level" of the government, split the issue into two parts for consideration.
Following the recommendation of the Parliamentary Standing Committee on Law in December last to hold the two polls together, the Law Ministry had sought the views of the Election Commission.
Now, after analysing the report of the standing committee and the poll panel, the Law Ministry has split the issue into two parts -- one dealing with legalities involved and the other regarding logistics, infrastructure and finances.
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In its reply to the Law Ministry in May, the Commission said it supports the proposal but cost involved will be to the tune of over Rs 9,000 crore.
The Commission has told the government as well as the committee that simultaneous conduct of elections would require large-scale purchase of Electronic Voting Machines and Voter Verifiable Paper Audit Trail (VVPAT) machines.
"For conducting simultaneous elections, the Commission expects that a total of Rs 9,284.15 crore will be needed for procurement of EVMs and VVPATs.
"The machines would also need to be replaced every 15 years which would again entail expenditure. Further, storing these machines would increase the warehousing cost," the Parliamentary panel had said quoting EC.
President's Rule in states and 'no confidence motions' against governments are situations which may occur. The government will have to see how to deal with such situations when it wants all states to have elections along with the Lok Sabha, official sources said.
Prime Minister Narendra Modi called for a public debate earlier this month on the issue as frequent elections cost a lot and the election-time code of conduct disrupts governance.
"Leaders from various parties support simultaneous polls in private but do not speak out publicly ... It warrants a public debate in which media can play vital role," said Modi at a post-Diwali function at the BJP office here.
The issue is likely to be discussed in the Lok Sabha during the ongoing winter session as some parties want the issue to be debated following demonetisation.
The government feels that while one-time cost in holding simultaneous polls would be high, the exercise may bring down expenditure involved in 'election bandobast' such as deployment of central forces and poll personnel.