Accordingly, if a convict avails of parole, he or she would have to serve his sentence plus the period of parole.
The proposal comes in the wake of murder convict Sajjad Moghul jumping his parole.
Moghul was sentenced to life sentence for molesting and murdering 25-year-old law professional Pallavi Purkayastha in Mumbai in 2012.
After he was granted parole recently, he absconded.
Eyebrows were also raised after the government released actor Sanjay Dutt - convicted in 1993 Mumbai blasts case - from jail in February this year, days before his scheduled release.
Principal Secretary (Home) Vijay Satbir Singh told reporters that such a provision (of excluding parole period from sentence) exists in the 'Modern Prison Manual' of the Central government.
"If approved by the state Cabinet, the government will have to amend the law," he said.
An official in the Home Department also said that as per the proposal, district collector will get the powers to grant parole, while the divisional commissioner will act as the appellate authority.
"The prisons department has further proposed that after the jail superintendent clears the application, it will be scrutinised by the Inspector General, Additional Director General of Police and two IPS officers in the Prisons Department," he said.
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