Coal Blocks

Private Cos gained at cost of CIL

(dated March 26, 2012 Monday in The Times of India)

The report observes that the proposal by Ratan  Tata on coal  allotments to commercial  entities was agreed upon by the Energy Co-ordination Committee under the chairmanship of P.M  Manmohan  Singh, in February  2006.

As early as July 28, 2006 the CAG draft notes, the department of legal affairs told the ministry that the government could if it wished, introduce competitive bidding by amending the “administrative instructions” .  If the government chose to do so, the allotments could be done under the Indian Contract Act of 1872.

COALGATE

According to the lists of allotment in the CAG’s draft report, 61 coal blocks were allotted to private companies in 2006. This is the highest number of allocations made between 2004 and 2009 in terms of how many blocks were given away in a single year.  However, in terms of reserves, 2009 stands out as the government gave away a reserve of 5,216 mt (million tonnes ) through 12 mines against 3,793 mt in 2006. Of this around 3,000 mt was given away to two private parties, a Tata group joint venture and a Jindal group unit, on a single day, February 27, 2009, barely a month before the Lok Sabha  elections that year.