Coalgate scam – now

The Parliamentary standing committee on coal and steel, headed by Trinamool Congress member Kalyan Banerjee, has recommended a comprehensive probe into allotment of all coal blocks since 1993. The committee has asked the government to scrap the allocation of 188 blocks where mining has not yet begun. The allocations were made to private companies during the 17 years, covering both UPA and NDA rule at the centre.

Coming down heavily on the government for “distribution of national resources“ in an arbitrary and unauthorised way, the multi-party parliamentary panel has pointed to serious lapses in the allocation of coal blocks. Among those who have held the coal ministry for some time during these 17 years are Manmohan Singh and Trinamool Congress chief Mamata Banerjee.

Though it is not mandatory for the government to accept the recommendations, it cannot ignore the standing committee's unanimous report. In the past, standing committee recommendations have been accepted and coal block allocations have been cancelled also.

As per coal ministry data shared with the committee, at least 13 coal blocks allotted to private companies were withdrawn. Similarly, in 58 others, notices were served last year seeking explanation as to why the allocation should not be withdrawn.

Slamming the allotment as private fiefdom of a few in the government, the panel has recommended investigation of all officials responsible for allotments and who joined power companies on retirement.

Kalyan Banerjee tabled the report amid a furore in Parliament. Neither House could to transact any substantial business. Besides coal, the government and the opposition locked horns also on the issue of the vetting by the law ministry of the CBI report on the 2G scam and former telecom minister A Raja's assertion that prime minister Manmohan Singh was kept in the loop over all decisions he had taken.

The 84-page standing committee report pointed out that coal was being produced only in 30 of 218 allocated in the 17 years arbitrarily and without auction. Mostly steel and power companies have benefited from these allotments that did not get the government any revenue. The panel pointed out that there was no estimate of revenue loss as the government failed to provide data on coal that was mined, actual reserves and projections along with timelines made by companies before the allotments were made.

Both the NDA and UPA governments allotted coal mines with reserves of 44.23 billion tonnes but earned no revenue from them. The committee asked the government to ensure that private companies passed on the benefit of getting coal at “no cost“ to people at large through cheap power.