coal block controversy

27/03/2015 Coalblockcontroversy:AnewsroundupLivemint

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Lastyear,Mintstartedtrackingcoverageofthecoalscamcontroversyacrossmedia.Heresrevivingtheserieswiththelatestdevelopments.

18October2013

ThecentralgovernmenthascomeoutstronglyindefenceofPrimeMinisterManmohanSinghafterformercoalsecretaryPCParakhsaidthatifheandKumarMangalamBirlaareconspirators,thensoisthePrimeMinisterequallyresponsiblefortheallegedconspiracyinallocationofcoalblocks,CNNIBNnewschannelsaidinareport.

UnioninformationandbroadcastingministerManishTewarispeakingtoKaranThaparonDevilsAdvocatesaidthatitwasunfairtoholdthePrimeMinisterresponsiblefortheadministrativedecisionstakenbythegovernmentatthebureaucraticlevel,thereportfurthersaid.

TheBusinessStandardnewspaperhasquestionedwhetherthePrimeMinistercanescapescrutinyontheallocationoftheTalabiraIIcoalblock

FIRSTPUBLISHED:THU,SEP062012.1127PMISTHOME POLITICS

Coalblockcontroversy:AnewsroundupThenewdevelopmentsinthecoalblockallocationcontroversy,putinperspectiveAmanMalik

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AAPfactionsfailtopatchupdifferences

toHindalco.

PCParakhslabellingofPrimeMinisterasconspiratornumberthreeinallocationofcoalminetoKumarManglamBirlapromotedHindalcoisnotwithoutreason.Thescreeningcommittee,ofwhichParakhwasthechairmanwhenhewasthecoalsecretary,makesrecommendationstothecoalministryforallocationcaptivecoalminesbutthefinalapprovalcomesfromtheminister.PrimeMinisterManmohanSinghwastheCabinetministerofcoalwhenHindalcowasadmittedasacodeveloperofTalabiraIIcoalblockin2005alongwithUniongovernmentownedNeyveliLigniteCorporation(NLC).,thenewspapersaysinanopinionpiece.

Accordingtotheprocedurelaidoutforgivingoutcaptivecoalminingrights,theministryofcoalmakesdirectallocationofcoalminestogovernmentcompaniesunderthegovernmentdispensationroute.Forprivatecompanies,itdoesallocationbasedontherecommendationsofaninterministerialscreeningcommittee,thepiecefurthernotes.

TheIndianExpressnewspaperhassaidthatbeforefinalisingtheFIRnamingKumarMangalamBirlaandP.C.Parakh,theCBIhadinternallydebatedontheideaofmakingadirectreferencetothePrimeMinister.

SourcestoldTheIndianExpressthatCBIofficials,workingontheFIRagainstKumarMangalamBirlaandexCoalSecretaryP.C.ParakhhadinitiallymadereferencestothePrimeMinisterbecausehewascoalministerwhenHindalcogottheTalabiraIIcoalblock.Inthefinaldraft,approvedbyagencydirectorRanjitSinha,however,thesereferencesappearedascompetentauthorityandunknownpublicservants.,thenewspaperreportsaid.

CBIofficialsclarifiedthatthefilingoftheFIRwasanindependentdecisionandthatnolegaladvicefromanyGovernmentlawofficerwassoughtinthecase.Interestingly,theCBIisexpectedtofileaclutchofotherFIRsinthecoalblockallocationcasebefore29October,thenexthearingintheapexcourt,thenewsreportfurthersaid.

WithindaysoftheCBInamingAdityaBirlaGroupchiefK.M.BirlaandformercoalsecretaryP.C.Parakhinits14thFIRintheblocksallocationcase,thecoalministryispreparingtocanceltheallotmentofsomemegablocksincludingthoseofJSPL,TataPower,NTPCandSAIL,TheIndianExpresssaidinanotherstory.

Theinterministerialgroup(IMG)lookingintothecasehasshortlisted30blocks.Thegroupissettomeetnextweek.Showcausenoticeshavealreadybeenservedamonthagototheallotteesofeachblockpointingtothedefaultsinmeetingmilestones,thereportfurthersaid.

On15May,Minthadreportedthatthegovernmentwassettoissueshowcausenoticestotheholdersofatleast30captivecoalblocks.Thecompaniesthatarelikelytobeservednoticesincludesomeoftheprominentonesinthepowerandsteelsectors.TheyincludeJindalSteelandPowerLtd,TataPowerCo.Ltd,GVKPowerandInfrastructureLtdandJaypeeGroup,thenewsreporthadsaid.

TheHindunewspaperhassaidinareportthatthereversalofdecisionthatfinallyledtotheawardoftheTalabiraIIcoalblocktoHindalcoIndustriesLtd,pointstoPrimeMinisterManmohanSingh.Thereportsaysthis,citingtheminutesofthe25thscreeningcommitteethathadrejectedHindalcosclaimontheblock.

ThisnewevidenceshowsthatthecommitteesrecommendationswerechangedinthecaseoftheAdityaBirlaGroupatthebehestofPrime



MinisterManmohanSinghwhowasalsocoalministeratthetime.ThisconclusionisderivedfromthefactthatthoughMr.Parakhhastakenpartownershipforthechangeinthedecision,thecoalsecretaryalone,thoughheadingthecommittee,hasnopowertochangeitsrecommendations.Thispowereithervestswiththecommitteeorwiththecoalminister,thereportsays.

Interestingly,theexistingpolicystipulatesthatnocoalblockinwhichanyCentralPSUhasshowninterestorhasdevelopedinfrastructureintheareatosupportminingactivityintheareawillbeallottedtoanyprivatecompany.Sinceinthisparticularmatter,MCL,aCentralPSU,hadappliedandwasrecommendedforcoalblockallocation,itmakesitdoublysurprisingthatthecoalminister(PM)wentagainstthepolicytoapproveandallotasharefromTalabiraIItoHindalco,thereportfurthersays.

Meanwhile,TheHinduBusinessLinenewspapersaysinareportthatthePublicAccountsCommitteeofParliamentissettocallKumarMangalamBirlaandP.C.Parakh.Theexaminationisunlikelytostopthere.MembersinthepanelwantindustrialistsincludingNaveenJindal,VijayDarda,AjaySanchetiandotherbeneficiariesoftheallocationtobesummonedalongwiththethenministryofficials,thereportsays.

AskedifthePrimeMinisterwillalsobesummoned,apersonawareofthedevelopmentsquippedthatallroadsleadtoRome.Itis,however,theprerogativeofthePACchairman,MurliManoharJoshioftheBharatiyaJanataParty,todecidethenamesofpeoplewhohavetobeinterrogatedbythepanel,thereportfurthersaid.

RankledbyCBIactionagainsttopindustrialistK.M.Birlainrelationtocoalscam,corporateleadersonThursdaysaidbusinessmencannotbemadescapegoatsonthebasisofmeresuspicionandsuchincidentswouldfurtherwidenthegovernmentindustrytrustdeficit,ThePressTrustofIndiasaidinareport,citingvariousindustryrepresentatives.

HindalcoIndustriesmanagingdirectorDebuBhattacharyaonThursdaysaidifhehadknownhowcomplexandfraughttheprocesswouldbetosetupanaluminaplantandasmelterinOrissa,hewouldhaveneverputitup,BusinessTodaymagazinesaidinareport.

Ireallydontunderstandwherewewentwrong.Ifanything,wehavebeenatthereceivingend,BhattacharyatoldBusinessToday.

AdvocateManoharLalSharma,themainpetitionerinthecoalscamcase,filedanapplicationintheSupremeCourtonThursday,questioningtheFIRthattheCBIfiledagainstKumarMangalamBirlaandtheformercoalsecretary,PrakashChandraParakh,withoutincludingthenameofPrimeMinisterManmohanSingh,TheHindunewspapersaidinanotherreport.

WhilethecorporateworldslamstheCBIsmovetoaccuseindustrialistKumarMangalamBirlaofconspiracyinallotmentofacoalblocktoHindalco,theIASOfficersAssociationisconsideringpetitioningtheCentreagainsttargettingofformercoalsecretaryP.C.ParakhmerelybecausehehadmetBirlabeforerevisinghisearlierdecisionrejectingHindalcosapplication,areportinTheTimesofIndiahassaid.

AnIASofficerworkinginhomeministryarguedthatthemannerinwhichParakhhasbeenpulledoutofhisretirementandaccusedofcorruptionwillproveadisincentiveforallseniorbureaucratswhogooutoftheirwaytomeetstakeholdersbeforetakingmajordecisions,thereportfurthernotes.

17October2013



OdishachiefministerNaveenPatnaikonThursdaydefendedhiswritingtoPrimeMinisterManmohanSinghtoexamineexpeditiouslythepleaofAdityaBirlaGroupcompanyHindalcoforallotmentofacoalblockinthestate,whichisundertheCBIscanner,sayingitwasdonekeepingthebestinterestsofOdishainmind,thePressTrustofIndiasaidinareport.

IhadurgedthePrimeMinistertoexamineHindalcosrequestforcoalblock...butaspertheprocedureforcoalblockallocation,thefinaldecisionrestswiththecentralgovernment,PatnaiktoldreportersinBhubaneswar,thereportsaid.

Meanwhile,anNDTVreportclaimsthattheCBIfirstinformationreport(FIR)mayalludetoPrimeMinisterManmohanSinghandhisoffice.ThereportsaysthattheinvestigatingagencyhasnotgivenacleanchittothePrimeMinistersOffice.

InwhatmaybemoretroubleforthePrimeMinister,theCBIFIRmayalludetohimandhisoffice.IntheFIR,accessedbyNDTV,thereisreferencetoacompetentauthoritywhoclearedalldecisions.ThisseemstobeDrSinghwhowasholdingthecoalportfolioatthattime,theNDTVreportsaid.

ThefirstreferenceistothecompetentauthorityapprovingthescreeningcommitteesrecommendationtorejectHindalcosapplicationinfavourofthePSUs.Thesecond,allegedcriminalactioniswhenthecompetentauthorityapprovescoalsecretarysdecisiontooverturnscreeningcommitteeandapproveHindalco,thenewsreportfurthersaid.

CNNIBNnewschannelsaidonThursdaythattheCentralBureauofInvestigation(CBI)isscanningtheroleofOrissachiefministerNaveenPatnaikinthecoalscam.NaveenPatnaikhadreportedlywrittentoPrimeMinisterManmohanSinghtoapprovecoalblocksofAdityaBirlaGroupchairmanKumarMangalamBirlaownedHindalco,thenewsreportsaid.

CBIsourcessayPatnaikwrotetoManmohanSinghtoallocatetheTalabiraIIcoalblocktoHindalco.PatnaiksenttheletterafterthescreeningcommitteerejectedHindalcosbidin2005,thereportfurthersaid.

AtopCBIofficialhowevertoldMintthatPatnaikwasunlikelytobequestionedinthecase.

FourmonthsafteritbookedindustrialistandpoliticianNaveenJindalinthecoalblockallocationscase,theCentralBureauofInvestigationsaidonTuesdaythatithadfiledafirstinformationreport(FIR)againstKumarMangalamBirla,chairmanoftheAdityaBirlaGroup,andP.C.Parakh,aformerunioncoalsecretary.

TheAdityaBirlaGroupcompanyHindalcoIndustrieshasalsobeennamedintheFIR,theCBIsaid.

TheCBIisinvestigatingcoalfieldallotmentsinaprobemonitoredbytheSupremeCourt.

Theyhavebeenbookedforcriminalconspiracy,MintcitedaseniorCBIofficialassaying.TheFIRstatesthatintheyear2005,thesepeoplecolludedincriminalconspiracywithoneanotherandthepublicservantsthenabusedtheirofficialpositiontoshowfavourstooneprivatecompany,theofficialsaid,detailingthecontentsofthecomplaint,theMintreportsaid.

Followingthis,onWednesday,theagencysaidthatithadrecoveredmorethanRs.25croreinunaccountedforcashduringasearchofHindalcoIndustriesLtdsNewDelhioffice,insearchesconductedonTuesday.



Themoneyhasbeenpassedontotheincometaxdepartmentforfurtherinvestigation,aseniorCBIofficialsaid.Theofficial,whodidntwanttobenamed,furthersaidthatduringsearchesofotherHindalcooffices,theagencyhadrecoveredincriminatingdocumentsMintreportedonWednesday.

Meanwhile,Parakh,inaninterviewtoMintonWednesday,saidthatthedecisiontoawardapartoftheTalabiraIIcoalblocktoHindalcowasfairandright.Hesaidthatifhewerepartofaconspiracy,thenPrimeMinisterManmohanSinghtooshouldbetreatedasanequalactorbecauseitwasthePrimeMinistersOfficethattookthefinaldecision.

Meanwhile,inareport,TheTimesofIndiasaidthattheCBIsdecisiontonameBirlainanFIRwillscaretheindustry.

GovernmentleadersareworriedthattheCBIactionagainstindustryleaderslikeKumarMangalamBirlawilldentbusinessandinvestorconfidence.AtleasttwoUPAministersonWednesdayslammedCBIsrepeatedpursuitofindustrialistsandbureaucratsandwarnedthatsuchactionimpactdecisionmakingandhitinvestorconfidence,thereportsaid,citingunionministersincludingcommerceministerAnandSharmaandcorporateaffairsministerSachinPilot.

Inrecentmonths,apartfromBirla,severaltopindustrialistsamongthem,SunilMittal,RaviandAnshumanRuiaofEssar,NaveenJindalofJSPL,JSWsSajjanJindalandUnitechsSanjayChandraandahostofcorporatehouses,includingAnilAmbanigroupfirm,VodafoneandTataCommunicationarefacingCBIactionforallegedirregularities,thereportfurthernoted.

SharmawasjoinedbycaptainsofindustrysuchasHDFCchiefDeepakParekhandBioconheadKiranMazumdarShawwhosharplycriticisedtheCBImove.ParekhsaidthatstraightforwardpeoplelikeBirlawerebeingharassedbytheIndianprosecutionsystemwhilemajorfraudsterswereallowedtogoscotfree,TheIndianExpressnewspapersaidinarelatedreport.

Enquiry...revealedthatwhiletherecommendationsofscreeningcommitteewerebeingapprovedbythecompetentauthority,itreceivedlettersdated07.05.2005and17.06.2005fromKumarMangalamBirlaofM/sHindalcoIndustriesLtd,requestingforallocationofTalabiraIIcoalblock,whichwereforwardedtotheMinistryofCoal,theCBIhassaidinitsFIR,anotherreportinTheIndianExpresssaid.

AccordingtotheCBI,BirlametParakh,thethenSecretary(Coal),duringJuly2005andrequestedfortheallocationofTalabiraIIcoalblocktoHindalco...PursuanttotheselettersandthepersonalmeetingbetweenParakhandBirla,Parakh,byabusinghisofficialpositionasapublicservantrecommendedtheallocationofTalabiraIIalongwithTalabiraIIIcoalblocktoHindalco,alongwithothertwocompanieswithoutanyvalidbasisorchangeincircumstancesandwiththesoleintentiontoshowunduefavourstoHindalco,thereportfurthernotes.

26October2012

Thepublicaccountscommittee(PAC)oftheParliamentledbyseniorBJPleaderMurliManoharJoshiwillvisitOdishasoontoscrutinizeallegedirregularitiesincoalblockallotmentsinthestatebetween2005and2009,BusinessStandardnewspapersaidinareport.

TheninememberpanelwillalsoexaminetheprocedurefollowedbythestategovernmentinrecommendingcoalblocksforprivateaswellasPSU



firms.Besides,thepanelwillcheckthestatusofcoalblocksallocatedtoMahanadiCoalfieldsLtd(MCL),aCoalIndiasubsidiary.ThepanelwilltakeupscrutinyonthebasisofthefindingsoftheComptroller&AuditorGeneralofIndia(CAG)oncoalblockallocations.ThePACwillreachOdishaonNovember2.Itwillholdtalkswiththechiefsecretaryandothertopstateofficialsonthenextday,saidaseniorsteel&minesdepartmentofficial,thereportfurthersaid.

TheRs1.86lakhcrorecoalscamhadanunexpectedfalloutwiththeJindalSteelandPowerLtd(JSPL)allegingthateditorsofZeeNewsgrouphaddemandedmoneytostopthecoverageofthecompanybeingoneofthebeneficiariesofcoalblockallocations,DNAnewspapersaidinareport.

Thevideoshowsthebroadcasterseditorsseekingmoneyfromthesteelmakersemployeestoblackoutunfavourablereportsonthecompanyrelatedtoirregularitiesintheallotmentofcaptivecoalminesbythegovernment,Mintsaidinanotherreportonthesameissue.

23October2012

TheInterMinisterialGroup(IMG)willdecidethefateof13coalminesallocatedtopublicsectorfirmsonthefirstdayofatwodaymeetinglikelytobeheldnextweekThiscouldincludefirmssuchastheChhattisgarhMineralDevelopmentCorp.andtheAndhraPradeshPowerGenerationCorp.,thePressTrustofIndia(PTI)saidinareport.

TheIMGwillmakerecommendationswithregardto13coalminesallotedtopublicsectorfirmson30October.On31Octoberthepanelwillmakerecommendationsfor20mines,anofficialinthecoalministrysaid.Onthesecondday,theIMGwillmakerecommendationswithregardstoPSUslikeNalcoandMMTCamongothers,theofficialsaid,thereportadded.

Acoalministrymemoontheinterministerialgroupnotingthattherewasnomechanismtoverifycorrectnessofdatafurnishedbycoalblockalloteestodayledtheoppositiontoallegethatgovernmentwasnotseriousaboutcheckingcorruption,butCongressplayeddowntheissue,anotherPTIreportsaid.

Thecommunicationdated10/11September,releasedbyJD(U)presidentSharadYadavtomediaonTuesday,said,theIMGhadnotedthatthereisnomechanismtoverifythecorrectnessofdatafurnishedbythealloteesexceptinthecaseswherepowerplantsmonitoredbyCentralElectricalAuthorityaretheenduseplants.Thememonotedthecharteredaccountantcertificateandphysicalprogressreportbythecompanieswastakenonrecord,thereportfurthersaid.

AccusingrulingCongressofnotbeingseriousincurtailingcorruption,JD(U)onTuesdaysaidtheOppositionwillcornerthegovernmentoncoalblockissueinwintersessionofParliamentbeginningfrom21November,yetanotherPTIreportsaid

Hittingoutagainsttheirregularitiesincoalblockallocations,RTIactivistEASSamrablamedpoliticiancorporatenexusforthecorruptpracticesandsuggestedtheideaofcompetitivebiddingtobringtransparencyinallsectors,ZeeNewsreported.

CriticisingPMManmohanSinghforemptyreformpromiseshesaid,ThePMjusttalksaboutreforms.Thereisnoreformvisibleinreality.Headdedthatthereisnochangeintheallocationofspectrumyetandinanysectorforthatmatter,beitcommonwealth,2Gorcoalgate,thereportadded.

Lawswerefloutedandsidesteppedbythosewieldingpowerinthe



massivecoalscamwhichtookthecountrybystorm.ZeeNewsfoundablatantexampleofthiswhenitvisitedRaigarhdistrictofChhattisgarhwhereithasbeenallegedthattheadministrationoverlookedtheconcernsofthelocalpopulationtoallotcoalblocktotheJindalSteelandPowerLimited,ZeeNewssaidinanotherreport.

WhenZeeNewsvisitedgroundzeroitfoundoutthatthepeopleofKhamiyaravillagewereagainsttheallocationofcoalblocktoJSPL.Asperthevillagers,JSPLsprojecthadtobegivenanenvironmentalclearance.However,thepolicelathichargedtheprotestorsandchasedthemaway,thereportfurthersaid.

19October2012

TheAttorneyGeneralG.E.VahanvatihasadvisedthegovernmentagainstgoingtocourttoseekexemptionforDrManmohanSinghfromFIRsorpolicecomplaintsbeingregisteredbytheoppositionBJPacrossthecountryinconnectionwiththecoalswindle.Thegovernmentislikelytoaccepthisopinion,NDTVnewschannelsaidinareport.

ThegovernmentisconcernedthatthePrimeMinistercouldbequestionedbythepoliceinconnectionwiththecoalscam,worthRs1.86lakhcroresaccordingtothenationalauditor.

SoitwaskeentoaskforimmunityforDrManmohanSingh,thereportsaid.

TheBJPhaslaunchedahighvolumecampaignagainstthePrimeMinisterbecausehewasinchargeofthecoalministrywhensomecoalblockswereallocatedatbelowmarketrates.TheauditororCAGsaidinareportinAugustthatthemethodofallocationlackedtransparency,butdidnotindicteitherthePrimeMinisterorhisoffice.TheBJPisfilingpolicecasesagainstcoalministerSriprakashJaiswal,SoniaGandhiwhoisthechairpersonoftherulingUPAcoalition,andthePrimeMinister,thereportfurthersaid.

BJPtodaysoughttoresurrectthecoalallocationissue,allegingthereisahugescaminthecancellationoftheallotmentswherenomininghasbeendonewellpastthedeadlineandunduedelayisbeingcausedbythecoalministryandtheInterMinisterialGroup.BJPMPHansrajAhir,whohasbeenspearheadinghispartyscampaignagainstcoalblockallotments,toldreportersheretodaythatlikeintheallocations,thereisahugescaminthecancellationoftheblocksaswell.HenamedcoalministerSriPrakashJaiswalandtheIMGastheonesresponsibleforthis,thePressTrustofIndiasaidinareport.

CoalsecretaryS.K.SrivastavaandCoalIndiachairmanS.NarsingRaowerehauledoverthecoalbytheStandingCommitteeofParliamentonCoalandSteeloverthedelayinthecancellationoflicencestodevelopersthathadnotundertakenexplorationactivitywithinthesettimelimit.Theministryhassoughtaweekstimetosubmitadetailedreplytothecommitteeontheactiontaken.Ithadhadthreemonthsforthisexercise,TheHinduBusinessLinesaidinareport.

SourcesonthecommitteetoldBusinessLinethattheywereinformedbyministryofficialsthatlicencesofabout30blockswerecancelledsofarandbankguaranteesof14allotteesencashed,thereportadded.

Rattledbythedinoverallegedirregularitiesinallocationofcoalblocks,thegovernmentisbringingbackinspectorrajinthepowersector,TheIndianExpressnewspapersaidinareport.

Proposednormsenvisageindependentengineersbeingstationedat



eachupcomingthermalprojectforroundtheclockmonitoringofoperations,somethingthatprivatedevelopersarecallingexcessivelyintrusiveandunworkable,thereportsaid.

PrivatepowerprojectdevelopersledbyTataPowerandReliancePowertodaymetofficialsfromthePrimeMinistersOfficeonthis,amongotherissues.Theproposal,partofacontentiousbiddingregimebeingusheredintothepowersector,isintherevisedStandardBiddingDocuments(SBDs)forpowerprojectsfloatedbyPowerMinistryinpartnershipwiththePlanningCommission.TheprovisionintheSBDstipulatestheappointmentofanindependentengineerbythestateelectricityboardtooverseeoperationsoftheplant,includingefficiencyintheusageofcoal,todecidewhethertheelectricitytariffbeingchargedbytheplantisfair.Theengineerwillalsohavethemandatetoreviewdrawingsanddocuments,inspectandmonitortheconstructionandcompletionoftheproject,thereportfurthersaid.

18October2012

ThecoalministryhasfiledacaveatintheSupremeCourtagainstapetitionchallengingcoalblockallocations,thePressTrustofIndia(PTI)reported.

AftertheComptrollerandAuditorGeneral(CAG)reporthadobservedthatfinancialbenefitsofanestimatedRs1.86lakhcrorecouldhaveaccruedtoprivatefirms,twopetitionshavebeenfiledintheapexcourtagainstthecoalblockallocations.MembersofcivilsocietyincludingformerCEC,N.Gopalaswami,exNavychief,L.Ramdasandformercabinetsecretary,T.S.R.Subramanianhadon4OctoberapproachedtheSupremeCourtseekingacourtmonitoredSITprobeintothecoalblockallocation.TheyfiledajointPILalongwithotherretiredbureaucratsandNGOCommonCausepleadingtheapexcourttoquashtheentireallocationofcoalblockstoprivatecompaniesmadebytheCentresince1993.Thepetitionersallegedthatallotmentofcoalblockswasnontransparentandwasdoneinanunfairmannerinviolationofrulesandprocedures,thereportadded.

TheInterMinisterialGroup(IMG)oncoalblocksislikelytofinalizeitsrecommendationsbythemonthendwithregardto33blocksallottedtopublicsectorfirmssuchasNalcoandMMTC,PTIsaidinanotherreport.

ThePSUswhichpresentedtheircasesbeforethepanelincludeAndhraPradeshPowerGenerationCompany,ChhattisgarhMineralDevelopmentCorp,MMTCandNalcoamongothers,thereportadded.

Thecoalministryhassoughttheadviceofthelawministryontheformatofdeallocationlettersthatwillbesenttoabout13coalblockownerswhoseblocksaretobetakenbackbythegovernment,saidpeoplefamiliarwiththedevelopment.TheministryhasalsoengagedtheCoalControllerforcalculatingtheamounttobedeductedfromthebankguarantees,andtheprocessislikelytobecompletedthisweek,TheEconomicTimesnewspapersaidinareport.

ThecoalministryissendingastockreplytohundredsofRighttoInformation(RTI)applicants,citingtheongoingCentralBureauofInvestigation(CBI)probeasareasonfornotbeingabletoprovideanswerstoquestionsseekingdetailsonthecontroversialcoalblockallocations,Mintsaidinareport.

RepliestoapplicationsreceivedinthelastmonthorsosayprovidinginformationwouldhindertheprosecutionbyCBI,accordingtoagovernmentofficialclosetotheprocess,thereportadded.

15October2012



TheSupremeCourtonMondaysoughtthestandsoftheCentreandtheOdishagovernmentonchargesthatauthoritieshadindulgedincorruptioningivingacoalblock,allocatedtothestateminingcorporationin2003,toaprivatefirm,thePressTrustofIndia(PTI)reported.

APILhassoughtaCBIprobeintodivestingOdishaMiningCorporationLtd(OMC)ofthecoalblockinTalchercoalfieldofAnguldistrictandhandingoverthesametotheprivatefirm,thereportsaid.

FiledbyTalcherbasedsocialactivistPurnaChandraSahu,thePILhasallegedthatwhiletheconductoftheOdishagovernmentwasmanifestlyillegal,thatoftheCentreremainingsilentdespitenoticingthevariousactsofomissionbythestateisequallyshocking.InthepleafiledthroughadvocateSureshTripathy,theactivisthasallegedthatduetothenontransparentandarbitrarypolicyintroducedbytheCentre,thecoalblockallocatedinfavourofOMCwashandedovertoaprivatefirmbythestateinanarbitraryandmanifestlycorruptmanner.HehassaidthatthecoalblockwasallocatedinfavourofOMCon19December,2003andtheconsentletterregardingthesamewasreceivedbyOMCon5January,2004,thereportfurthersaid.

ThecoalministrywillstartsendinglettersfordeallocationofcoalblocksfromMonday,TheEconomicTimesnewspapersaid,citingatopministryofficial.

Allfilesregardingdeallocationandbankguaranteesofcompanies,whichhavenotmettargetstodevelopblocks,havereachedthecoalministryfromtheinterministerialgroup(IMG).Theministerialpanelhaddecidedtodeallocateblocksonwhichnoprogresshasbeenmade,theofficialsaid,thereportnoted.

BlockstobedeallocatedincludeBramhadihblockinJharkhandallocatedtoCastronMiningin1996,ChinoraandWarora(southernpart)blocksinMaharashtragiventoFieldMiningandIspatin2003,Lalgarh(North)blockinJharkhandallottedtoDOMCOSmokelessFuelsin2005.GourangdihABCcoalblockallottedtoHimachalEMTAPower&JSWSteel,RawanwaraNorthcoalblockallottedtoSKSIspatandPowerandNewPatraparacoalblockallottedtoBhushanSteelandotherswillalsobedeallocated,thereportfurthernoted.

TheCentralBureauofInvestigation(CBI)onMondayfiledtwofreshFIRsinthecoalblocksallocationsscam.Sourcessaidthattheagencywasconductingsearchesat16locationsinsixcitiesinfivestates,CNNIBNnewschannelsaidinareport.

TwoofthecompaniesthatwereraidedduringthesearcheswereGreenInfraandKamalSteel.Thetwocompaniesareaccusedofmisrepresentingtheirnetworth,thereportadded.

ThegovernmentmayusethefindingsofaCrisilreporttocountertheComptrollerandAuditorGenerals(CAG)estimatesonwindfallgainsthatallegedlyaccruedtoaclutchofprivatecompaniesfrom57coalblocksallocatedtothembetween2004and2009withoutauction,TheFinancialExpresssaidinafrontpagestory.

CoalministrysourceshavehintedthattheministrymayputupthereportbeforeParliamentsPublicAccountsCommittee(PAC)tobuttressitspositionthattheCAGwaswronginputtingthelosstotheexchequerduetodiscretionaryallocationofcoalblocksatawhoppingR1.86lakhcrore,thereportsaid,citingcoalministryofficials.

Meanwhile,CrisilhasrevisedthefundamentalgradeofMonnetIspat&



EnergyLtdtothreeonfive(3/5)formthepreviousgradationoffouronfive(4/5),TheHinduBusinessLinesaidinareport.

ItsaidthatthedowngradeessentiallyconsiderstheuncertainrepercussionsoftheCAGsrecentreportoncoalblockallocation.AnyadverseoutcomewillimpactMonnetsprofitabilitysignificantly,Crisiladded.

Monnetwaspreviouslygradedhigherbasedontheexpectedhighprofitabilityofitsupcoming1,050MWpowerprojectbasedontheallocationoftwocaptivecoalblocksMandakiniandUtkalB2inOdishasAnguldistrict,thenewsreportsaid.

CRISILhasrecommendedlinkingthevaluationofcoalreservestobeputupforbiddingtointernationalprices.Initsdraftreportoncoalblockauctioning,BusinessStandardsaidinareport.CRISILhassaidgivingsubsidiesforuseofnaturalresourcesdoesnotprovideincentivesformarketparticipantstojudiciouslyutilisethescareresourceinthelongrun,thereportadded.

Thedraftreportnotesatleastfivefactorswillimpactthevalueofaminetobebidout.Theseincludecoalpriceconsidered(whetherimportparityorCIL),discountrateconsideredfornetpresentvalue(NPV),operatingcostassumptions(whetherdepartmentaloroutsourcing),timelinesfordevelopmentandadditionalpaymenttoprojectaffectedpeopleaccordingtothedraftMinesandMineralsDevelopmentandRegulation(MMDR)Bill,thenewsreportfurthersays.

13October2012

TheParliamentaryStandingCommitteeonCoalandSteelwillreviewtheallotment,developmentandperformanceofcoalblocks.AdecisiontothiseffectwastakenatthefirstmeetingofthereconstitutedcommitteehereonFriday,TheIndianExpressnewspapersaidinareport.

ThecommitteeisheadedbyTrinamoolCongresssLokSabhaMPKalyanBanerjee.Incidentally,HansrajAhiroftheBJP,whoiscreditedwiththeexposureofanomaliesintheallocationofcoalblocks,isalsoamemberofthecommittee.Thepanelwouldalsolookintocoalpricingandroyaltybesidesthepoliciesforcoallinkagesandexportofironore,thereportsaid.

Meanwhile,thegovernmentcouldsoongrantforestclearancetotheMahancoalblock,whichfindsmentionintheComptrollerandAuditorGeneralsrecentreportonimproperallocationsofcoalblocks,Mintsaidinareport.

TheMahancoalblockwasallocatedtoajointventureofEssarPowerLtdandHindalcoIndustriesLtd,thereportsaid.

FormerenvironmentministerJairamRameshhadbeenapprehensiveofgivingaclearancetotheMahancoalblockandreferredboththeblockstoagroupofministersheadedbythethenfinanceministerPranabMukherjeeThepanelclearedboththeblockson30May.Itincludedthecoalandpowerministers,apartfromtheenvironmentminister,thereportnoted.

12October2012

TheTimesofIndiareportsthattheOrissaunitoftheCongresspartyhasaccusedstatechiefministerNaveenPatnaikofbeinginvolvedinthecoalblockallocationandminingscams.TheoppositionCongressonThursdayallegedthatchiefministerNaveenPatnaikisscaredofreferringtothe



miningscamandcontroversiessurroundingtherecommendationofcoalblocktotheCBIbecauseinvestigationbythecentralagencywouldexposecorruptioninhisgovernment,thereportsays.

TheOPCCpresidentreferredtothecontroversialOMCSainikdealfortheUtkalDcoalblockandsaidthegovernment,whichinitiallydefendeditsdeal,hadtofinallycancelthejointventureagreementwiththeDelhibasedcompanyonlyafterpublicpressuremounted,thereportgoesontosay.

CongressmemberofparliamentVijayDardamayhaveviolatedtheStateEmblemofIndia(ProhibitionofImproperUse)Act,2005,

VijayDarda,CongressmemberofParliament(MP)intheRajyaSabha,whowasrecentlyinthenewsinconnectionwiththecoalblockallocationscam,appearstobeusinghispositionformorethanjustParliamentarywork,BusinessStandardnewspaperreports.

Dardahasbeenusinghisofficialletterhead,whichhashisnameandthenationalemblem,tosecureadvertisementsfromcompaniesfortheDiwaliissueofthepublicationsoftheLokmatMediagroup,ofwhichheisthechairman,thereportgoesontosay.

11October2012

JSWSteelonThursdaysaiditmaytakethegovernmenttocourtfollowingacoalministrydecisiontodeallocatetheGourangdihABCcoalmine,allottedjointlytotheSajjanJindalledfirmandHimachalEMTAPowerLtd,Moneycontrol.comreported.

Wehavetakeneffectivestepsindevelopmentofmineandalsoinimplementingtheenduseplant.Wewilltakeitupatappropriateforumeitherinthecourtorinthegovernment,iftheytakethatactionwhichisnotright,thecompanysjointmanagingdirectorSeshagiriRaotoldreporters,thereportsaid.

Actingonarecommendationfromtheinterministerialgroup(IMG),thegovernmenton18SeptemberhadannouncedthedeallocationoftheGourangdihABCblock,allocatedtoJSWandHimachalEMTAjointlyinJuly2009.TheIMGfoundthattheprojectdevelopershadfailedtodeveloptheblockwithintheprescribedtimeandhadnotachievedcriticalmilestonesincludingforestclearance,grantofminingleaseandlandacquisition,thereportsaid.

TheTopworthGroup,oneofthecompanieswhichcameintothelimelightduringthecoalgaterevelationsrecently,wasraidedbytheincometaxsleuthsonWednesday,TheTimesofIndiasaid.

Topworthiscomingupwithanintegratedspongeiron,steelandpowerplantatUmrerRoad,forwhichithadpurchasedacaptivecoalblockoriginallyallottedtoShreeVeeranganaSteels.Thiscompany,promotedbyformerpresidentofVidarbhaIndustriesAssociation(VIA)MohanAgrawal,hadgottheblockthroughthegovernmentsallocationsystemin2005.However,insteadofdevelopingthemine,thepromotersoldthecompanytoTopworthUrjaandMetalsforaroundRs30crore,thenewspaperreportadded.

TopworthgroupispromotedbytheLodhafamilyfromJalgaon.Thepromotershadbeenissuedanoticebytheministryofcoalalso,whichpointedoutthatfrequentchangesinownershipindicatedprofiteeringfromofthecoalblock,thereportfurthersaid.

Meanwhile,sevencoalblocksthathadbeenallocatedtotheMaharashtrastategovernmentin2006,togetheraccountingformorethan4,000million



tonnesofcoalreserves,remainunoperationalisedsixyearslater,DNAnewspapersaidinareport.

TheblocksallocatedtotheMaharashtraStateMiningCorporation(MSMC)buckthecoalallocationstrend:Auctionswereconducted,jointventure(JV)partnerspaidthegovernmentsweatequity.Andstill,theblockslieidle,oneembroiledinlitigationandtheotherfivejostlingwithenvironmentalclearances,landacquisitionandinteragencywrangling.ThesmallestoftheseisAdkoliinVidarbhasYavatmaldistrict.ItisbeingdevelopedbyaJVofMSMCandSunilHitechPvtLtdthathasneitherbeenabletoacquirethe300hectaresoflandnorgetenvironmentalclearances,thereportsaid.

Thecoalministryhascancelledatleastfiveblocksheldbygovernmentcontrolledpowercompanies,TheIndianExpressnewspaperreports.

BrushingasidethecontentionsofthepowerministryandtheJharkhandgovernment,thecoalministrytodayrefusedtorestorefivecancelledcoalblocksofcentralandstaterununitsofwhichthreebelongtoNationalThermalPowerCorporation(NTPC).Themovecomescloseontheheelsoftheministryendorsingtherecommendationsofaninterministerialgroup(IMG)fordeallocating13coalblocksanddeductionofbankguaranteeincasesof14mines,thereportsays.

ThefiveblockswhicharefacingtheaxeincludeNTPCsKerandari,ChhattiBariatuandChattiBariatu(South)blocks,DamodarValleyCorpsSaharpurJamarpaniandJharkhandStateElectricityBoards(JSEB)Banhardihblock.Theblockswereallocatedtothefirmsunderthegovernmentdispensationroutein200607butwerecancelledon14Junelastyearafterareviewcommitteerecommendedtheirdeallocationcitingpersistentnonperformance,itfurthernotes.

10October2012

Thecoalministrywillauction38coalblockswhile16willbesetasideforgovernmentcompanies,BusinessTodaymagazinehasreported.

Havingburntitsfingersinthecoalscam,theUnitedProgressiveAlliance(UPA)isbeingextracautiouswhileallocatingthenextsetofcoalblocks.Significantly,38ofthe54coalblocksidentifiedbythecoalministrywillbeauctionedwhile16willbesetasideforgovernmentruncompanies,thereporthassaid.

Sourcesinthecoalministrysaidthateventhoughthedecisiontoallocatethe54blockswastakeninMay,beforethecoalscambroke,thegovernmentiskeenonmakingthisroundofallocationsastransparentaspossible.,thereportsaid.Thissenseofurgencyisfurtherevidentinthefactthatthegovernmenthasexpeditedtheallocationprocessforthese54blocks.InendAugust,Jaiswalhadsaidthatitwouldbedifficulttocompletetheprocessbytheendofthisyearandthattheallocationsmighttakeplaceonlynextyear.Thishaschanged,thereportadded.

ThecoalministrywillfileacaveatintheSupremeCourtagainstapetitionchallengingcoalfieldallocations,Mintreported.

SincetheComptrollerandAuditorGeneralofIndia(CAG)tableditsreportoncoalfieldallocationsinParliamentinAugust,twopetitionshavebeenfiledintheapexcourtagainsttheallocations.

ThecaveatisbeingfiledforthepetitionfiledbylawyerPrashantBhushan.Thereisachancethatthetwocasesmaybeclubbed,thereportsaid.

Meanwhile,theJharkhandgovernmenthasdecidedtotakebacklandfrom



thecoalminingcompanies,includingthepublicsectorundertakings,whichhaveeitherremainedunusedforyearsorwheremininghasbeencompleted,TheTimesofIndianewspapersaid.

Thestategovernmentexpectstogetbackatleast1,000to1,500acresfromthecompanies,including690acresfromtheCentralCoalfieldsLimited,asubsidiaryoftheCoalIndiaLimited(CIL).ThetwootherCILsubsidiariesthatareoperationalinJharkhandareBharatCokingCoalLimitedandEasternCoalfieldsLimited.StatelandreformandrevenuedepartmentministerMathuraPrasadMahatohasaskedhisofficialstopreparealistofsuchplotswhichwillbesenttothecompaniesforreturningtheland,thereportsaid.

OfficialssaidthematterwasdiscussedwiththeofficialsofthecoalminingcompaniesandalsowiththeGeologicalSurveyofIndiaforreturningtheunusedlandtothestatesothatitcouldbeallottedtootherindustriesawaitingtoestablishtheirplantsformanyyears.Thereareatleast50bigcompanieslikeArcelorMittal,TataSteelandJindalSteelandPowerLimitedwhichhavefailedtostarttheirgreenfieldprojectsinthestatebecauseoflackofland,thereportfurtheradded.

9October2012

ThegiftingawayoflandbelongingtoCoalIndiaLtdbytheOdishagovernmentin2004issettoembarrasstheBharatiyaJanataParty,nowaccusedoffavouringacompanypromotedbyrelativesofthelateformerDelhichiefministerSahibSinghVerma,DNAnewspapersaidinareport.

Thelandinquestionisa22acreexpanseinthebackwardJharsugudadistrictofOdisha,giventoGlobalCoalandMiningPvtLimited(GCMPL)bythestatesIndustrialInfrastructureDevelopmentCorporation(IDCO)controlledbytheBJPsindustriesministerBiswabhusanHarichandanintheBJDBJPgovernmentofthetime.Notonlywastheland,ownedbyCILsubsidiaryMahanadiCoalfieldsLtd,handedovertoGCMPL,butacoalwasherywasalsopermittedonthelandin2006,inclearcontraventionoftherules.DespiteashowcausenoticeissuedbyMahanadiCoalfieldsLtd,GCMPLhasrefusedtovacate,takingthedisputeintolitigationthatbeganin2009andisstillcontinuing.Activistsallegethatthedealwasapoliticalfavour.Thislandhasmorethan2milliontonnesofcoalreservesandwasgiventoGCMPLbyHarichandanasapoliticalgift,saidK.C.Das,anactivistfromtheareawhohasbeenfightingabouttheissueforseveralyearsnow,thereportnoted.

WhileGCMPLispromotedbyCaptainKuldeepSinghSolanki,itsassociatecompanyACB(India)LtdispromotedbyHaryanabasedRudraSenSindhuandSolanki.RudrarunsACB(India)Ltdwithhissixbrothers.Theyoungestbrother,DevSumanSindhu,ismarriedtoSahibSinghVermasdaughter.After2008,Rudra,VritpalSindhuandVirSenSindhu(allbrothers)alsobecamenomineedirectorsoftheGCMPL.ACB(India)Ltdswebsitesaysitholds35.61%equityinterestinGCMPL.ThedisputedatesbacktoMay2004,whenIDCOfiledanalienationproposalfor21.17acreswiththeLakhanpurtehsildarsoffice.Thereafter,inJune2004,theJharsugudacollectorleasedthelandtoIDCOforestablishmentofindustries.Withinjustfivemonths,IDCOsubleasedthelandtoGCMPLfora90yearperiod,on29October2004.ThelandispartoftheSamleshwariOpenCastprojectofMCL.ThePSUacquiredthelandinvillageBelpahar,Jharsuguda,undertheCoalBearingAreas(CBA)Act,thereportfurthersaid.

Meanwhile,thesecondroundofreviewoftheunderdevelopedcoalblocksallocatedtovariouscompanieswillbegintoday,TheTribunenewspaper



saidinareport.

Theinterministerialgroup(IMG)hassoughtexplanationfromthepublicsectorundertakings(PSUs)thathavenotcarriedoutanyworkonthecoalblocksallottedtothem.Sourcesinthecoalministrysaidatotalof31noticeshavebeenissuedtovariousPSUstogivepresentationsbeforetheIMGwhichisscheduledtomeetinnextovertwodaysfromTuesday.ThemovetoseekexplanationfromthePSUscomesaftertheIMG,earlierthismonth,wentaheadwiththereviewof29blockswiththeprivatesector.TheIMGhadrecommendedthedeallocationof13blockswhilepenalisinganother14withthedeductionoftheirbankguarantee,thenewsreportsaid.

Sourcessaidwhileon9October,thepublicsectorfirmswiththepossessionof15coalblockswouldmaketheirpresentations,andon10October,16coalblockholderswillmaketheirpresentationsbeforetheIMG.ThepublicsectorfirmswhichwillmakepresentationswouldincludeChhattisgarhMineralDevelopmentCorporation,MMTCandTVNLamongothers.SourcessaidthattheIMGislikelytofinaliseitsrecommendationswithregardtothePSUminesby20October,thereportfurthernoted.

ThecoalministryhasaskedReliancePowertostopminingatcoalblocksattachedtothecompanysSasanultramegapowerproject(UMPP)tilltransferoflandownershipiscompleted,TheHinduBusinessLinenewspaperhasreported.

AseniorministryofficialtoldBusinessLinethattheanoticehasbeenissuedtoReliancePowertoimmediatelystopminingatMoherandMoherAmlohriblocksifthecompanyisusinglandthatisyettobelegallytransferredtothefirm.TheMoherandMoherAmlohriblocks,giventotheUMPP,aresurroundedbylandnotifiedbyNorthernCoalfieldsLtd(NCL),accordingtotheCoalBearingAct.ApartoftheselandsistobelegallytransferredtoSasanPowerLimited(SPL),theReliancePowercompanythatoperatestheUMPP,thereportsaid.

TheministryhastakenthestepafterNCLinformeditthatSPLhasstartedusingthelandevenwhenthelegaltransferoflandisawaited.SPLhasstartedclearingtheareaandusingheavyearthmovingmachineryontheland,thereportfurthersaid.

Initsreplytotheministrynotice,ReliancePowerhascitedtheoutcomeofthe17October2011meeting,whereitwasdecidedandagreedbetweenallstakeholdersthatnoncoalbearingareaswouldbetransferredtotheUMPP.NCLhasgivenitsnoobjectiontotheproposal,ReliancePowersaid.

ReliancePower,initsreply,said:FortheportionofprivatelandoverwhichNorthernCoalfieldshasraisedobjection,samehasbeennotifiedforobjectionbySPLunderLandAcquisitionAct,1894.NorthernCoalfieldsraiseditsobjectiononlyatthelaststagewhenlandwasbeinghandedovertoSPLbytheDistrictCollector.

TheAnilAmbaniownedReliancePower(RPower)startedproductionfromcaptivecoalminesallottedforitsshowcaseSasanUltraMegaPowerProject(UMPP)lastmonth,despiteagovernmentdirectiveaskingthecompanytostopminingactivitiestillfewformalitieswerecompleted.ThematterrelatestotheissueoftransferoflandheldbyCoalIndiasubsidiaryNorthernCoalfieldsLtd(NCL)toSasanPowerLtd(SPL),theReliancePowersubsidiarydevelopingthe4,000Megawatt(MW)project.EvenwhilethetwocoalblocksMoherandMoherAmlohriExtensionwerehandedovertoReliance,ittranspiredthatNCLhadalreadyacquiredpartofthelandoftheblocksforitsownprojects,theBusinessStandardsaidina



relatedreport.

8October2012

Thegovernmentislikelytodeliberatenextweekonthecriteriatobeadoptedforauctionofcoalblockstostateownedfirms,thePressTrustofIndia(PTI)reported.

Aninterministerialmeethasbeenscheduledfor15Octoberandwilldeliberateondrafttermsandconditionsforallocationofcoalblockstogovernmentcompaniesthroughcompetitivebiddingmode,acoalministryofficialtoldPTI.Themeetingwilldeliberateondrafttermsandconditions...regardingallocationofareacontainingcoaltogovernmentcompaniesforthepurposeofspecifiedendusersunderRule4oftheAuctionbyCompetitiveBiddingofCoalMinesRules,2012,theofficialsaidquotingfromtheagenda.Theagendaofthemeetingshallbe...todiscussonthecriteriatobeadoptedforselectionofthegovernmentcompanyforallocationoftheblock,theofficialsaid.Themeeting,tobechairedbycoalsecretaryS.K.Srivastava,willalsobeattendedbychiefsecretariesofthestatesbesidesofficialsfromministriesofsteel,power,legalaffairs,economicaffairsandthePlanningCommission,thereportsaid.

Meanwhile,thegovernmenthasidentified54coalblockstobeallocatedandhaschosenCrisilasitsconsultancypartner,whichwillprovidemethodologyforcalculatingreserveandfloorpricesforallthesecoalblockallocations,CNBCTV18,newschannelsaid.

ItisalsoknownthatCrisilmayaddsharelockinclauseintheauctionorallocationpolicytoseethatthereisacorrectuseofthesecoalblocks.Itisalsolearntthatashareholdermeetingwillbeheldon12October,2012,whererepresentativesfromfinance,steel,powerministryandotherswilljointodiscussthisdraftreportfurtherwiththecoalministryofficials,thereportsaid.

TheUnioncoalministryhasaskedtheOrissagovernmenttoexpeditetheactiontakenreportontheissueofillegalcoalmining,BusinessStandardnewspaperhassaid.

Atatimewhencontroversysurroundingblockallocationshascaughtdifferentcoalbearingstatesinabind,theministryofcoalhasurgedtheOrissagovernmenttosubmititsactiontakenreportattheearliestinconnectionwithillegalcoalminingactivities.Inthelightofobservationsmadebytheparliamentarystandingcommitteeoncoalandsteel,coalsecretaryS.K.SrivastavahasaskedOrissachiefsecretaryB.K.PatnaiktoexpeditetheactiontakenreportssothattheycanbecompiledandsenttotheLokSabhasecretariat,thereportsaid,

ThoughthecoalministryhadwrittentothestatechiefsecretaryearlieronthematterinDecember2011,thestatewasyettoapprisetheministryonactiontakeninrespectofillegalcoalmining.Wakingupratherbelatedlytothedirectiveofthecoalministry,theOrissasteelandminesdepartmenthasnowurgedMahanadiCoalfieldsLtd(MCL)andcollectorsoffourdistrictsAngul,Sambalpur,JharsugudaandSundergarhtocomplywiththerecommendationsoftheparliamentarypanel.Thedepartmenthasalsosuggestedthattherecommendationsbediscussedinthemeetingofthedistrictleveltaskforce.Theparliamentarystandingcommitteehadobservedthatthenaturalresourcesofthecountryarebeingplunderedatthecostofnationaleconomyanddestructionofenvironment.Thepanelwasoftheopinionthatofficialsresponsibletocurbillegalminingareeitherindifferentortooscaredtostopthemenace,thereportsaid.

ThiscomesevenastheOrissagovernmenthasaskedthecentreto



allocateminesonlytostateownedcompanies.

Inaswiftmovebythedepartmentofsteelandmines,alettersenttothedirectorofUnioncoalministryP.SomaShekharReddy,thestategovernmentstated,Thecoalrequiredbytheindustrieslocatedoutsidethestatecanbemetbythehoststategovernmentcompanies.However,prioritywillbegiventotherequirementofcoalforindustrieslocatedorproposedtobesetupinthehostcoalbearingstate.Thestatesenttheletterafterthecentrecirculatedadraftoftherevisedguidelinesforcoalblockallocationtothegovernmentcompaniesforthepurposeofmining.Theletteralsosaidthattheareascontainingcoalforallocationtogovernmentcompaniesshouldbeidentifiedtakingintoconsiderationthatsuchareasshouldbefairlylargeinsizehavingsufficientandgoodqualitycoalreservestoenableplanninghighcapacitycoalprojectswithworldclasstechnologyandstandardswithmatchinginfrastructuralfacilitiessothattheneedsoftheenduseplantscouldbemetonalongtermbasis,areportinThePioneernewspapersaid.

On3September,thecoalministrycirculatedtherevisedtermsandconditionsunderRule4oftheAuctionbycompetitivebiddingofcoalminesRules2012tosteel,power,financeandindustrialproductiondepartmentsofthestategovernmentsseekingtheircommentsbeforeitsfinalization.Accordingtotheproposedguidelines,theapplicationsshouldcontaindetailedjustificationwithreferencetorequirementofthestate,theexistinglinkages(theplant/industrywheretheminedcoalwillbeused)andtheareascontainingcoalalreadyallocated,thereportfurtheradded.

FormerMPandmemberofPublicAccountsCommittee(PAC)SurinderSinglahasaskedComptroller&AuditorGeneral(CAG)VinodRaitorevisithisreportoncoalinthewakeoftheSupremeCourtsopiniononthePresidentialReference,whichconfirmedtheConstitutionalpositionthatpolicymakingpowerlieswithintheexclusivedomainoftheexecutive,TheIndianExpressnewspaperreported.

TheformerMPsaidthatpeopleofIndiadeservetherighttobereeducatedonthefreshfindingsoftheCAGasrevisitedinthelightoftheSupremeCourtsobservation,thereportsaid.

7October2012

InaninterviewtotelevisionnewschannelCNNIBN,BharatiyaJanataParty(BJP)PresidentNitinGadkarihassaidthathewillquitpoliticsifanybodycouldprovehisallegedbusinesslinkswithcloseaideandpartyMPAjaySancheti,currentlyinthemidstofanirrigationscaminMaharashtra.

Sanchetisnamealsofiguresinconnectionwiththecontroversyrelatedtotheallotmentofcoalblocks.

GadkarisaidthatSanchetididnotgetasinglecontractduringhistenureasthePublicWorksDepartment(PWD)ministerofMaharashtra,areportpublishedbythechannelsaid.

AjaySanchetiisdoinghisbusinesssincethelast30years.Heisathreegenerationbusinessmenandcontractor.Ihave...directly,indirectly...notanytypeofbusinessrelationswithhim.NowIamgoingtochallengeeverybody...toCongresspartyandthemedia.IfyouhavegotasingleevidencethatcanprovethatIamadirect,indirectbusinesspartnerofAjaySanchetiorSharadPawar,pleaseidentify,Iwilldonateallthatpropertytowhosoeveritmaybewhocanidentify,thechannelcitedGadkariassaying.

ThePressTrustofIndia(PTI)saidinreportthattheCongresspartyhas



demandedthattheChhattisgarhgovernmentcomeoutwithawhitepaperlistingtheallegedfavoursgiventoSancheti.

ThestateCongressspokespersonShaileshTrivediallegedthatChhattisgarhgovernmentshowedfavourstoSanchetiscompaniesasheisafriendofBJPpresidentNitinGadkari.HechargedthatSMSInfrastructure,thecompanyownedbySanchetifamily,hadgottwocoalminingleasesfromthestategovernmentwhichwouldcauselossofRs25,000croretothestateexchequer,thereportfurthersaid.

PTIalsoreportedthattheInterMinisterialGroup(IMG)oncoalblocksislikelytofinaliseitsrecommendationswithregardtothe31minesallocatedtopublicsectorfirmsbyOctober20.

IMG,whichhadrecentlyconcludedthescrutinyof31coalblocksallotedto51privatefirms,ismeetingthisweekodecidethefateof31coalblocksallocatedtopublicsectorfirms.PSUcompanieswillpresenttheircasebeforetheIMGonOctober9and10.Ofthetotal31coalblocksallottedtothepublicsectorfirmswhichwereissuednotices,around15coalblockholderswillpresenttheircaseonfirstday,while16willmakepresentationsonthesecondday.ThefirmswhichwillmakepresentationsincludeMMTC,ChhattisgarhMineralDevelopmentCorporationandTVNL.TheCoalMinistryisholdinganinternalmeetingthisweektodiscusswaystodeductbankguaranteesofprivatecompaniesincaseofthe14blocksfollowingtheInterMinisterialGrouprecommendingactionagainstthem.

AfewweeksafteritbroughtaresolutiongivingstateownedOrissaMiningCorporation(OMC)firstrightoverareascontainingmajormineralssuchasironore,bauxiteandchromite,theNaveenPatnaikgovernmenthaswrittentotheCentretoallocateareascontainingcoaltoOMCalone,TheIndianExpressnewspaperreported.

ReplyingtothecoalministrysdrafttermsandconditionsforallocationofcoalblockstogovernmentcompaniesforthepurposeofminingunderRule4oftheAuctionbycompetitivebiddingofcoalminesrules2012,thestategovernmentonSaturdaywrotebackthattheareacontainingcoalshouldbeallocatedonlytogovernmentcompaniesunderthecontrolofhostcoalbearingstate.TheCentrehadcirculatedthedrafttermsamongallthestatesonSeptember3thisyear.Lastmonth,theOrissasteelandminesdepartmenthadbroughtoutaresolutionsayingmineswhichhavenotbeenleasedoutwouldhenceforthbegiventoOMC,thereportsaid.

Replyingtoanotherdraftclauseoftheministrythatcoalproducedfromblockswouldbedistributedthroughlongtermcontractsorlinkagestospecifiedendusers,Orissalistedoutfourcategoriesofplantswhichshouldbegivencoal,thereportfurthersaid.

6October2012

ActivistenvironmentgroupGreenpeacehasallegedthattheenvironmentministryhasclearedthecontroversialMahancoalblockinMadhyaPradesh.

Theministryofenvironmentandforests(MoEF)hasallegedlygivenforestclearancetocontroversialcoalblockinMahan,MadhyaPradesh,areportinTheTimesofIndianewspapersaid.TheNGOclaimedthattheclearancewasinviolationofforestrightsoftribalslivinginthearea.Peoplefromdifferentvillagesaroundthecoalblockhavewrittentothedistrictcollectordemandingthattheirforestrightsberecognised.ThevillagerssaidthattheyaredependentontheMahanforestforavarietyofforestproduce.AnotherletterfromthevillagersclaimedthattheywerenotallowedtoholdagramsabhatoclaimrightsunderForestRightsAct,the



reportadded.

MadhyaPradeshchiefminister,ShivrajSinghChauhanhadlobbiedwiththenenvironmentminister,JairamRameshseveraltimestogetthecoalblockcleared.Buttheministryhaddeniedclearanceduetoenvironmentalconcerns,thereportfurthersaid.

5October2012

Thecoalministrywillholdaninternalmeetingnextweektodiscusswaystodeductbankguaranteesofprivatecompaniesinthecasesof14blocksfollowingtheInterMinisterialGrouprecommendingactionagainstthem,thePressTrustofIndia(PTI)reported.

CoalsecretaryS.K.Srivastavahascalledameetingwithofficialsofhisministrynextweek.Therewouldbediscussionsonthecalculationsdonebythecoalcontrolleronbankguaranteedeductionforcoalmines,thereportcitedanofficialinthecoalministryassaying.

InanotherreportPTIsaidfinancialservicesfirmCrisil,consultanttothecoalministryforfixingthereservepricesforauctionof54mines,isexpectedtosubmititsreporton8October.

Further,theministryisexpectedtoholdameetingon16OctobertodeliberateontheCrisilreport,theofficialadded.Basedonthereport,thegovernmentwouldinitiatethebiddingprocessforallocationofmines,thereportsaid.

TheCentralBureauofInvestigation(CBI)lookingintocoalblockallotmentsbetween1993and2004haszeroedinontheperiodaround2003asithasfoundthatthehighestnumberofallotmentsweremadeinthatyearwhentheNDAgovernmentwasinpower,andtheBJPsKariaMundawasthecoalminister,TheIndianExpresshasreported.

CBIofficerssaidthat20blockswereallottedduring2003,ofwhich13weregiventostatepublicsectorfirmsandtheresttoprivatecompanies.TheprivatecompaniesincludePrakashIndustriesLtd(PIL),promotedbyVedPrakashAggarwal,brotherofJaiPrakashAggarwal,whoisknowntobeaBJPRSSsupporter.ThecoalblocktoPILwasallottedinBJPruledChhattisgarh.UshaMartinLtd,whichalsoownsmediagroupPrabhatKhabar,wasallottedacoalblockinJharkhandin2003.ThelistofthosewhogotcoalblockswasgiventotheCBIbythecoalministryaftertheagencyregisteredmultipleFIRsandpreliminaryenquiriestoprobecoalblockallotmentssince1993,thereportsaid.

Meanwhile,thePrimeMinistersOfficehasconvenedameetingofCoalandPowerSecretariestodaytodiscusstheissuesrelatedtothetwosectorsincludingintroductionofcompetitivebiddingforcoalblocks,reviewoftheprogressmadebytheInterMinisterialGroup(IMG),reformsinthepowersector,pricepoolingformulaforcoalandsigningoffuelsupplyagreements(FSA)byCoalIndiaLimited(CIL),NDTVreports.

Membersofcivilsocietyandnongovernmentalorganizations(NGOs)havemovedtheSupremeCourt,demandingthecancellationofallcoalblocksallottedtoprivatecompaniessince1993,theHindustanTimessaidquotinganIANSnewsagencyreport.

TheSupremeCourtwasmovedonThursdaybyNGOsseekingthecancellationofallcoalblocksallocatedtoprivatecompaniesfrom1993to2012anddemandingacourtmonitoredinvestigationintotheissue,thereportsaid.

ThepetitionwasfiledbyNGOCommonCause,formercabinetsecretary



T.S.R.Subramanian,formerchiefelectioncommissionerN.Gopalaswami,formerIndianNavychiefR.H.Tahiliani,formersecretariestogovernmentRamasamyR.IyerandSushilTripathi.Thepetitionallegedthegovernmentwentinformassiveallocationofcoalblockstoafewselectprivatecompaniesatnocostinacompletelyarbitraryandnontransparentmanner,causingahugelosstothepublicexchequerrunningintotensoflakhsofcroresofrupees.

4October2012

TheCentralBureauofInvestigation(CBI)hasgotitsteethintonewevidencepointingtothemanipulationofcoalblockallocations,theIndiaTodaymagazinehassaidinareport.

ExplosivedocumentsinitspossessionpointtothecosyrelationshipbetweenthefamiliesofminingbaronManojJayaswalandthatofCongressMPVijayDarda.MailToday,whichfirstexposedtheJayaswalDardalinkinCoalgate,investigateshowthetwofamiliesworkedintandemtoillegallybenefitfromthecoalblockallocations,thereportsays.

CBIsuspectsthatsharesofAMRIronandSteelPvtLtd,oneoftheJayaswalgroupcompanies,weregivenfreeofcosttotheDardaownedLokmatgroupinreturnforacoalblockallocationfacilitatedbytheCongressMP,thereportadds.

AtelltalecommunicationoftheJayaswalfamily,aletterwrittenbyManojtohisfatherandbrotherssays,AMRhasbeenallocatedacoalblockbecauseoftheeffortsoftheLokmatgroupandhencecommitmentsmadehavetobehonouredintruespirit.Iconveythat26%freeequitybeallottedimmediatelytoLokmatgroupwithoutanyfurtherdelayandLokmatgroupnomineesbeappointedasChairmanandDirector.Thereisfurtherindicationofhishighpoliticallinksintheletter.Itreferstothesettlementofownershipof14%sharespresumablyofAMRtobedecidedbyShriSriprakashji,thatisUnioncoalministerSriprakashJaiswal.However,Jaiswalhasdeniedthathehasanythingtodowiththematter,thereportfurtheradds.

Meanwhile,areportinTheEconomicTimesnewspaperhassaidthattheAbhijeetGroup,whichisbeinginvestigatedbytheCentralBureauofInvestigation(CBI)foritsallegedinvolvementintheindiscriminateallotmentofcoalblocks,islikelytoapproachbanksforrestructuringitsloans.

Selectunitsofthecompanycouldapproachbanksforadebtrecast.Theyarestillindialoguewiththebanks,saidabankerintheknowofthedevelopment.WeareabitcautiousaftertheCBIraidsonthepromoterandwearemonitoringthedevelopments,thereportsaid,citingabankerwithexposuretothecompany.

Inaseparatereport,TheEconomicTimeshassaidthatRashtriyaJanataDalleaderandformercorporateaffairsminister,PremChandGupta,appearstobeintrouble,withBJPapproachingCBIwithdocumentspointingtohislinkswithISTSteelandPowerthatbaggedacoalblockinMaharashtra.

DocumentsfurnishedbyBJPsecretaryKiritSomaiyashowthatGupta,acloseassociateofRJDleaderLaluPrasad,isadirectorofHongKongbasedGuptaInternationalInvestmentCompanythatholds49.95%stakeinISTSteelandPower.DahegaonMakaradcoalblockwasallottedtoISTSteelandPoweron17June2009.Itwasamongthecoalblocksdeallocatedbythecoalministryon26September.TheannualreturnsfiledbyGuptaInternationalInvestmentCompanywiththeRegistryofHongKong



showPremChandGuptaasadirectorofthecompany,residingatGroundFloor,15,WyndhamStreet,CentralHongKong.HiswifeSarlaandsonMayuraretheotherdirectorsofthecompany,thereportsays.

WhencontactedbyET,Guptaadmittedheisadirectorofthecompany,butsaidheheldnosharesinit.Thecompanywasfloated38yearsagoandwasafamilybusiness.ItisrunbymytwosonsMayurandGaurav.Ihavenoshareholdinginit,hesaid.GuptawasaministerinUPAIregimetillMay2009andthecoalblockwasallottedinJune2009.TheDahegaonMakardhokraIVblockwasgiventoISTSteelandPower,alongwithcementfirmsGujaratAmbujaandLafargeIndia,inJune2009.Theblockhas48.84milliontonnesofextractablereserves.ISTSteelandPowerownsthemajority53%stakeintheblock.AsperGupta,hissonGauravhasarunningspongeironplantthathasbeeninoperationsince2007.Whenthegovernmentinvitedapplications,hissonsappliedandGauravgotanundergroundcoalblockalongwiththeothertwocompanies,thereportfurthersaid.

3October2012

CitingtheongoingprobebytheCentralBureauofInvestigation(CBI),thePrimeMinistersOffice(PMO)hasdeclinedtopartwithinformationoncoalblockallocations,thePressTrustofIndia(PTI)reported.

ExercisinghisRighttoInformation,advocateVivekGarghassoughtinformationonminutesofallmeetingsbetweenUnioncoalministerandPrimeMinister,copiesofdecisions,approvals,ordersandlettersorcorrespondencesbetweentheCoalMinistryandPMOrelatedtocoalblocksallocation.GarghasalsofiledanRTIapplicationseekingdetailsonthecoalblocksallocationtoMinistryofCoalinformationonwhichwasdeniedbyitsayingtheinformationsoughtwasnotavailableinthecompiledform.Thecoalministrysaidinformationregardingdetailsofcoalblocksallocatedandvariousactsandguidelinesarealreadyavailableinpublicdomain,thereportsaid.

Further,mostofthefilesorrecordsrelatingtoallocationofcoalorligniteblocksareinthecustodyofCBI,NewDelhi.Theinformationsoughtisnotavailableinthecompiledformanditwoulddiverttheresourcesofthepublicauthorityverydisproportionatelytoprovidetheinformation,theMinistrysaidinitsreply,thereportfurthersaid.

BusinessStandardnewspaperreportsthatthegovernmentiscomingupwithanewpolicythatwouldmakeevenCoalIndiaLtd(CIL)payforminingrights.

ThecoalministryhasdecidedtochargeCILareservepriceforthe116coalblocksallottedtothestateownedminer,thereportsaidcitingacoalministryofficial.

TheofficialalsosaidthereservepriceforCILwoulddependontheaveragegradeorqualityofcoalintheblock,thelocationoftheacreageandtheaccessibilityofthemininglease.Thedetailsofhowthereservepriceforcoalblockswouldbecalculatedandthequantumoftheoutgofortheworldslargestcoalminerareyettobeworkedout,thereportsaid.

Thenewdispensationforcoalblockswouldbedifferentfromthegovernmentspolicyintheoilandgassector,wherestateownedcompaniesareconsideredonaparwithprivateonesduringbiddingforoilandgasblocksundertheNewExplorationandLicensingPolicy(Nelp).UnderNelp,companiesarenotchargedanupfrontpayment,buttheyhavetoshareaportionofproductionwiththegovernment,afterrecoveringcosts,itfurtheradded.



October1,2012

TheSupremeCourtonMondaydismissedapleathathadchallengedtheComptrollerandAuditorGenerals(CAG)powertoconductperformanceauditofcoalblockallocationandotherissues.

ObservingthatCAGisnotamunimji(accountant),theSupremeCourttodaysaidscrutinizingtheeffectiveuseofresourcesishisprimarydutyanditwasforParliamenttoacceptorrejecthisreports,TheIndianExpressnewspapersaid.

TheapexcourtbrushedasidethepetitionersargumentthattheCAGhadnoconstitutionalmandatetoscrutinisetheeffectivenessoreconomicaspectofthegovernmentspolicymatters,thereportnoted.

Meanwhile,theOrissagovernmentonMondaycancelleditsjointventurewithDelhibasedSainikMiningandAlliedServicesLtd(SMASL),thePressTrustofIndia(PTI)reported.

Criticizedforgiving74%staketoaprivatecompanyforcoalmininginthestate,OdishaMiningCorporation(OMC)todaysaiditsjointventureagreementwithDelhibasedSainikMiningandAlliedServicesLtdhasbeencancelled.TheJVbetweenOMCandSMASLwassignedin2003todevelopUtkalDcoalblockhavingareserveof145mt(milliontonnes)inAnguldistrict.IthadbeenallegedthattheJVagreementwasmadeinviolationoftheCoalMines(Nationalisation)Act1973,thereportsaid.

Meanwhile,aPIL(publicinterestlitigation)hasbeenfiledintheSupremeCourtoverOMCsdealwithSMASLfordevelopingUtkalDcoalblock,where74%stakeinthejointventurehasbeenconcededtotheprivateplayer,thereportfurthersaid.

29September2012

StateownedOdishaMiningCorporation(OMC)hasscrappedthejointventuredealwithDelhibasedSainikMining&AlliedServicesLtd(SMASL)afterthestatecontrolledminerfacedabarrageofcriticismforconcedingcontrollingstakeinthejointventuretotheprivateplayer,BusinessStandardnewspaperhasreported.

ThestategovernmentsdecisiontocancelthedealwithSMASLcomessixdaysafterapublicinterestlitigation(PIL)wasfiledintheSupremeCourtongroundsofblatantviolationofCoalMines(Nationalization)Act1973byallowingtheprivateplayertohavecontrollingstakeinacoalmineallocatedtoaPSU.ThepetitionerhaddemandedaCBIprobeintothedeal,thereportsaid,

Thestategovernmentisunderstoodtobeplayingsafeontheissueofcoalblocksandprojectslinkedtocoalminingafterfindingitselfinabindagainstcoalblockallocationrow.TheequitypatternoftheOMCSMASLjointventurehadalsodrawnflakfromtheMinistryofCoalwhichhadheldOMCguiltyofviolatingtheActbyconcedingcontrollingstaketoaprivateplayerfordevelopingacoalblockallotedtoastatePSU.TheministryhadissuedashowcausenoticetoOMCinJuly2010,urgingthePSUtoraiseitsstakeintheJVcompanytoatleast51percent.Inadditiontothis,theministryhadalsoadvisedOMCtosuitablymodifytheMemorandumandArticlesofAssociationoftheJVcompany.Inresponse,thestateChiefSecretaryBKPatnaikinalettertoCoalsecretaryAlokPertiinFebruarythisyearhadinformedthatOMCinitsboardmeetinghaddecidedtoraiseitsequityintheJVcompanyto51percentfromtheexisting26percent,thereportfurtheradded.



28September2012

On2October,agroupofvillagersinChhattisgarhwillmarch,togetminingrights,TheTimesofIndiareports.

Amidragingcontroversyovercoalblockallocations,Chhattisgarhisallsettowitnessauniquemovementfrom2OctoberGandhiJayantiwhenagroupofvillagerswillstartminingcoal,demandingthatlocalcommunitybegivenminingrightsonnaturalresources,thereportsays.

Around1000villagerswillbreakthecoallawlikeMahatmaGandhiledthemovementagainstsaltlaw.Localcommunitiesshouldhavethefirstrightonnaturalresourcesandnotindustrialhouses,thereportcitedSavitaRathofnongovernmentorganisationJanChetnaManchassaying.

Thegovernmentisdevisingasinglewindowclearancemechanismfordevelopmentofcoalblocks,TheEconomicTimesnewspaperreported.

ThegovernmentwilldiscusssettingupasinglewindowclearancemechanismonthelinesoftheForeignInvestmentPromotionBoard(FIPB)forcoalblockstoexpeditetheirdevelopmentaproposalmootedbytheComptrollerandAuditorGeneral(CAG)initsrecentreportoncoalblockallocations,thereportnoted.

InameetingwithtoppowerandcoalministryofficialsonOctober5,PulokChatterjee,principalsecretaryinPrimeMinistersOffice,willalsodeliberategovernmentsdefenceagainsttheCAGsreportthatallegedRs.1.86lakhcroreunduebenefitstoprivatecompaniesthroughnontransparentcoalblockallocations,sourcessaid.ThemeetingislikelytobeattendedbycoalsecretaryS.Srivastava,powersecretaryP.UmaSankarandCoalIndiachairmanS.NarsingRaoamongothers.Themeetingwillalsodiscussthegovernmentsplanofactionagainstthepublicinterestlitigation(PIL)admittedbytheSupremeCourtagainstallotmentofcoalblockstokinofpoliticalleaders.ThecoalministryisdraftingrepliestothequeriesraisedbytheSupremeCourt,thereportfurthersaid.

Inaninterestingopinionpiece,Firstpost.comhassaidthatUnionministerKapilSibalmayhavejumpedthegun,whilewelcomingtheSupremeCourtsjudgementandhailingitasavindicationofthegovernmentsstandontheissueofallocationofnaturalresources.

TheSupremeCourtclarifiedthatAuctionsmaybethebestwayofmaximisingrevenuebutrevenuemaximisationmaynotalwaysbethebestwaytosubservepublicgood.CommongoodisthesoleguidingfactorunderArticle39(b)fordistributionofnaturalresources.Itisthetouchstoneoftestingwhetheranypolicysubservesthecommongoodand,ifitdoes,irrespectiveofthemeansadopted,itisclearlyinaccordancewiththeprincipleenshrinedinArticle39(b),theopinionpiecenotes.

Between1993and2011,thegovernmentgaveaway195coalblockswithtotalgeologicalreservesof44.8billiontonnesfreetoprivateandgovernmentcompanies.Anestimateofthetotalamountofcoalpresentinablockisreferredtoasgeologicalreserve.Duetovariousreasons,includingthoseofsafety,theentirereservecannotbemined.Theportionthatcanbeminedisreferredtoasextractablereserve.Ofthese,115blocksweregiventocompanieswhichwouldusethecoalthattheyproducedfromthesecaptiveblocksforthemanufactureofcementandironandsteel,conversionofcoaltooilandcommercialmining.Theseblockshavegeologicalreservesamountingto20.53billiontonnesofcoal.Themanufactureofcementandironandsteelorcommercialminingoperationsareforprofitoperationsandcannotbetermedasactivitiesthatarepurelyaboutcommongood.Hencetherewasnoreasonforthegovernmentto



giveawaythesecoalblocksforfree.ThatisaclearinterpretationthatonecandrawoutofwhattheSupremeCourtsaid.Eightycoalblocksweregiventocompaniesforthemanufactureofpower.Ofthese80coalblocks,53blocksweregiventocompaniesforcaptivedispensationofpower.Theseblockshad10.66billiontonnesofgeologicalreservesofcoal.Whatthismeantwasthatcompanieshadtousethecoalproducedfromtheblockstheyhadbeengiventoproducepowertomeettheirinternalneeds.Henceacompanymanufacturingsteelcouldusecoalproducedfromitsblockstogeneratepowerneededtoproducesteel.Thefreecoalblockswouldallowthemtoproducepowercheaplyandthusbringdowntheircostsandthusmakehigherprofitsfromwhattheywouldhaveotherwisemade.Again,theendresultisaforprofitoperationandthiscannotbecategorisedascommongood.Hence,168outofthe195coalblockswithgeologicalreservesof31.15billiontonneswereallocatedtocompaniessupposedlyinforprofitoperations.Theremaining27blockswithgeologicalreservesof13.65billiontonneswereallocatedforproductionofpower.Ofthesesevenblockshadbeenallocatedtoultramegapowerprojects.Thecompanieswhichweregiventheseblockscouldproducepowercheaplybecausetheydidnothavetopayforthecoalblock.Thiscanbecategorisedasacommongood.Hence,commongoodislimitedtoaround30percentofthecoalreservesallocatedunderthegovernmentspolicyofgivingawaycoalblocksforfree.Eventhiscanbequestionedgiventhatallthesevencoalblocks(withgeologicalreservesof2.6billiontonnes)allocatedtotheultramegapowerprojectsareintheprivatesector.Andnoprivatesectorcompanyisinbusinesstomakealoss,thepiecesays.

ADNAreportsaysthathadtheCoalControllersOrganisation(CCO)notbeenunderstaffed,theallegedcoalscamcouldhavebeenprevented.

DNAhasfoundthattheseverelyshortstaffedCCOissimplyunabletomonitorcoalblocksefficiently.Withjustabout150employees,theCCOmonitorsmorethan600coalblocksacrossthecountry.TheseblocksincludethosebelongingtostaterunCoalIndiaLtd(CIL)anditssubsidiaries.Worse,morethan80%oftheCCOsexistingemployeesarenonexecutivestaff,includingpeonsanddrivers.Whatsmore,manyoftheCCOsemployeesareondeputationfromCIL,andeveryyear,afewreturntotheirparentcompany,thereportsays.

Asaresult,theCCOremainedunabletoevenreportthatofthe194privatecaptiveblockallottees,productionhasbegunonlyin28.Moreover,theaccuracyofdatafurnishedbytheallotteescouldnotbeproperlyassessedbythemonitoringcommitteeforcaptivecoalblocks.TheCCOcouldnotconductanyphysicalinspectionsofallottedcoalblockstoascertaintheactualprogressvisvistheprogressreportedbytheallottees,theCAGreporthadnoted.InJuly2010,theministryhaddirectedthatnineblocksthathadreachedpeakratedcapacitywouldnotbereviewedfurther,andthattheirprogresswouldbemonitoredbytheCCO.ButtheCCOfailedtocomplywiththesedirectives,thankstolackofmanpower,thereportfurthernotes.

27September2012

Thegovernmentislikelytotakeacallontheauctioningofcoalblocksthatweredeallocatedlastweekon5October,TheHindunewspaperreported.

ThePrimeMinistersOffice(PMO)hasconvenedameetingofthecoalandpowersecretarieson5Octobertodiscusstheissuesrelatedtothetwosectorsincludingintroductionofcompetitivebiddingforcoalblocks,reviewbytheinterministerialgroup(IMG),thenewspaperreportsaid.



ThePMOisalsolikelytoreviewtheprogressofthecompetitivebiddingprocesstobeintroducedforauctioningcoalblocksinfuture.Thecoalministryhadalreadylistedaround54coalblocksforauctioningunderthisnewmedium,andhadengagedtheservicesofaconsultant.ThecoalsecretaryisexpectedtogiveafeedbackontheproceedingsoftheIMGsetuptoreviewtheallocationof58coalblocks,andtheactiontakenbythecoalministryontherecommendationofIMG,thereportfurthersaid.

Inaninterestinganalyticalpiece,theBusinessStandardnewspaperhassoughttodetailhowaglobalspurtincoalpricesandloopholesinthemethodologyfollowedduringallocationoftheblocksmighthaveledtotheallegedcoalscam.Thereportsaysthatthequantumofreservesallocatedtocompanieshasmovedintandemwiththeincreaseinglobalpricesofcoal,yearafteryear.

Themadrushforgrabbingcoalreservesbycorporateswithlinkstopoliticalheavyweights,asexposedbytheComptrollerandAuditorGeneralofIndia(CAG)andtheCentralBureauofInvestigation(CBI)inthecoalscam,shouldnotcomeasasurprise.SuperimposingtheconsistentriseinglobalcoalpricesovertheyearlydataforcoalblocksallocatedoverthepastdecaderevealstherealreasonbehindtheRs.1.86lakhcrorescam,thepiecesays.Thequantumofreservesallocatedtocompanieshasmovedinasurprisingtandemwiththeglobalpricesyearafteryear.Interestingly,notonlydidtheallocationsjumpedwiththeriseinpricesbetween2002and2007,theyalsodroppedatexactlythesametimeasthepricesfell.Nodoubt,theIndianeconomyisfullyintegratedwiththeglobaldevelopments.

Theglobalcoalpricesremainedlargelystablebelow$25pertonneduringlate1990sandearly2000s.CoalblockallocationbeganinIndiain1993.Thegovernmentallotted41blocksoverthenextdecadeto2003.Pricesstartedshootingupin2003asdemandfromdevelopingeconomies,particularlyChina,rose.Theupwardtrendcontinuedandpricestouchedahighof$190pertonnein2008whentheglobalmeltdownledtoacrashincoalprices.ConsiderthebenchmarkpriceforthermalcoalexportsfromNewscastleinAustralia,theworldsbiggestcoalexportharbor.TheNewcastlepricesincreasedfrom$25pertonnein2003toahighof$185pertonneinearly2008.ThenumberofblocksallottedannuallyinIndiaalsojumpedfrom5in2004to52in2007.Post2007andearly2008,thepricescametumblingdownfrom$185pertonneto$80pertonnecurrently.Thenumberofblocksallottedalsocamedownfrom52in2007to24in2008,16in2009andfinally2blocksallottedin2011.Overall,thegovernmenthadallottedatotalof195coalblockswithreservesofawhopping43billiontonne(BT)to289companiesbetween1993and2011.Acloserlookatthegrowthofmarginsavailabletocompaniesbetween2003and2008incoalmining,alongwiththerelativeeaseofbaggingreserves,furtherrevealswhythecoalscamwaswaitingtohappen.Againstamarketpriceof$2530pertonnein2003,thecostofproductionworkedouttoaround$20pertonneinIndia,leavingatinymarginof$5oneverytonneofcoalmined.Thismarginwentuptoashighas$130pertonnein2008whenpricesjumpedto$180pertonneevenascostofproductionroseto$50pertonne,thereportnotes.

TheSupremeCourtonThursdaysaidaspartofitsorderonthecentrespresidentialreferenceontheauctionofnaturalresources,thatnaturalresourcescannotbedistributedascharity,Firstpost.comnotesinaninterestingpiece.

Doescoalgatequalifyasascandalof2Gproportions?Yes,ifthegovernmenthasgivenawaycoalminesasamatteroflargess,charity,donationorendowmentforprivateexploitation.Yes,ifthegovernmenthas



allowedonesetofcitizensprosperatthecostofanothersetofcitizens.Andyes,ifthecoalminesarenotallocatedtobestservethecommongood,thepiecenotes.

JusticeJagdishSinghKhehar,oneofthefiveSupremeCourtjudgeswhodeliveredtheirunanimousopiniononthePresidentialreferenceonThursday,madeitamplyclearinanaddendumastowhatmakesascaminagivensituation.Andforthis,justiceKhehartookcoalsectorasahypotheticalillustrationtoexplainwhereitmightleadthegovernmenttoarbitrarinessandbeunfairindisbursementofnaturalresources,itadds.

Oneiscompelledtotakejudicialnoticeofthefactthatallotmentofnaturalresourcesisanissueofextensivedebateinthecountry,somuchso,thattheissueofallocationofsuchresourceshadrecentlyresultedinawashoutoftwosessionsofParliament.ThecurrentdebateonallotmentofmaterialresourceshasbeenpromptedbyareportsubmittedbytheComptrollerandAuditorGeneral,assertingextensivelossinrevenuebasedoninappropriateallocations.Thereportitisalleged,pointsoutthatprivateandpublicsectorcompanieshadmadewindfallgainsbecausetheprocessofcompetitivebiddinghadnotbeenadopted.Thecountrywitnessedasimilarpoliticalspatalittlewhileearlier,basedontheallocationofthe2Gspectrum,thepiececitesjusticeKheharfromtheapexcourtsorder.

Bypickingupcoalsectorasahypotheticalsituation,justiceKheharexplicitlydemonstrateshowaforthrightlegitimatelegislativepolicymaytaketheshapeofanillegitimatestratagem,thepiecenotes.

Letsassumethatthegovernmentdecidestoallocatecoallotswithoutanyreciprocalfavourormonetarygainoranyotherconsiderationfromaprivateplayerengagedinpowergeneration.Thelawofthelandallowsitonlywhentheprivateplayerisawardedthepowerprojectonthebasisofcompetitivebidsfortariffs.Elaboratingthesamesituationfurther,JusticeKheharsays:Ifthebiddingprocesstodeterminethelowesttariff(ofpower)hasbeenheld,andthesaidbiddingprocesshastakenplacewithouttheknowledgethatacoalminingleasewouldbeallottedtothesuccessfulbidder,yetthesuccessfulbidderisawardedacoalmininglease.Wouldsuchagrantbevalid?Grantofaminingleaseforcoalinthissituationwouldthereforebeawindfall,withoutanynexustotheobjectsoughttobeachieved,itadds.

ThePressTrustofIndia(PTI),alsocitingjusticeKhehar,saidthattheSupremeCourtonThursdaysaidinitsorderthattheComptrollerandAuditorGeneralscomputationofmassivelossesin2GspectrumandcoalblocksallocationsandsubsequentdebatecouldbethereasonsfortheCentrefilingthePresidentialreferencetoseekopiniononmethodstopartwiththenaturalresources.

Butitdoesseem,thatthepresidentialreferenceisaimedatinvokingthiscourtsadvisoryjurisdictiontoironoutthecreases,sothatlegalandconstitutionalparametersarecorrectlyunderstood,thereportcitedthejudgeassaying.

Meanwhile,Mintreportedthatthegovernmentislikelytouseitsdiscretiontoallotatleast16coalfieldsbyDecembertostateownedcompanies,citingcoalsecretaryS.K.Srivastava.Thisisapartoftheministrysplantogiveaway54coalfieldsviatheroutesofallocation,biddingandauction,thereportsaid.

TheSupremeCourtsresponseonThursdaytoapresidentialreferencethatauctionisnottheonlywaytoallocatenaturalresourcesmayhelpimprovethesentimentaroundallocations,whichhavebeencriticizedafterareportoftheComptrollerandAuditorGeneralofIndia(CAG)alleged



lossesfromallocating195coalfieldssince1993,thereportsaid.

Inaninterestingturnofevents,CongresspartyhasnowsoughttolinkGujaratchiefministerNarendraModitothecoalblockallocationcontroversy,TheTimesofIndiahasreported.

LinkingGujaratchiefministerNarendraModiwithacoalblockallocationcontroversy,oppositionCongressonThursdaysoughtaprobebytheCentralBureauofInvestigation(CBI)intotheMineDeveloperCumOperator(MDO)dealsofChhattisgarhMineralDevelopmentCorporation(CMDC,thereportsaid.

CMDCsdealsaresuspiciousasitsmodusoperandiistoenterintojointventurewithcompaniesandhaveagreementswhichareheavilyloadedinfavourofotherparties.CMDCactedjustlikeamiddleman,thereportcitedAICCgeneralsecretaryB.K.Hariprasadassaying.

Hariprasadsaidthisblock,havingcoalreservesof1588.99mt,wereallocatedtoCMDCforthejointventurecompanyUCMCoalCompanyLimitedithadformedwithUttarPradeshRajyaVidyutUtpadanNigamLimited(UPRVUNL)andMaharashtraPowerGenerationCorporation(MAHAGENCO),thereportfurthersaid.StatingthattheCMDChadsoughtcoalblockallocationonthebasisofjointventureagreement(JVA)withBhushanSteelandforsupplying500MTrawcoaltothiscompany,theAICCgeneralsecretarysaidthiscoalblockwasallocatedtoCMDCwithouttherecommendationofOrissagovernment.EversincetheCoalgatescamsurfaced,thejointventureagreementsreachedbetweenChhattisgarhMineralDevelopmentCorporation(CMDC)withprivateplayersandselectionofMinedevelopercumoperator(MOD)areundercloudwiththeoppositionpointingoutthatthesedealswereaimedatfavouringthesecompanies.

AreportintheBusinessStandardnewspaperhassaidthatthecontroversyovercoalblockallocationscouldpossiblydelayIndiasfirstcoaltoliquidproject.

WiththeOdishagovernmentgettingentangledinawebofcontroversyoveritsrecommendationforcoalblockinfavourofJindalSteel&PowerLtd(JSPL)foritsRs60,000crorecoaltoliquid(CTL)project,theMoU(memorandumofunderstanding)tobesignedwiththecompanyislikelytobedelayed,thereportsaid.

AfterfacingthesalvooftheOppositionoverchiefministerNaveenPatnaiksallegedpreferentialtreatmenttowardsJSPL,thestategovernmentisunderstoodtobetreadingwithextracautionamidcoalblockallocationrow,thereportfurtheradded.

TheCTLprojectproposedatDurgapurinAnguldistrictenvisagedaproductioncapacityof80,000barrelsperday.Theprojectneeds4000acresoflandandthestategovernmenthasdecidedtoprovideatleast50%landtoJindalSynfuelswithoutwaitingforbenchmarkingandotherdetailedanalysis.TheCTLplantwillproducepetrol,diesel,keroseneandaviationfuel.Directandindirectemploymentisexpectedtobegeneratedfor30,000peoplethroughthisproject,thereportfurthersaid.

TheIndianExpressnewspaperhassaidthatasmanyasfourcompaniespromotedbyCongressmemberofparliamentNaveenJindalmayhaveusedthesameaddress,which,thenewspaperreportsays,wasfake.

28,NajafgarhRoad,NewDelhi.ThiswastheaddressusedbyfourcompaniesofCongressMPandindustrialistNaveenJindalthatappliedforcoalblocksbetween2006and2009.TwoofthemNalwaSteeland



GaganSpongegottheblocksusingwhathasnowturnedouttobeanonexistentaddress.TheothertwocompanieswhichappliedforblocksgivingthesameNajafgarhaddressandcontactdetailsontheirformswereOpelinaFinanceandInvestmentLtd,andMineralManagementServices,thenewsreportsaid.

TheJindalownedJindalSteelandPowerLtd(JSPL)andJindalPowerLtd(JPL)alsoappliedforcoalblocks.JSPLtoowasallocatedblocksbythescreeningcommittee,thereportfurthersaid.

Meanwhile,TheHindunewspaperreportedonhowaPuducherrygovernmentownedcompanymayhavebeenspurredbyacompanytoacquireacoalblock.

Itappearstobeastrangecaseofaprivatefirmspurringagovernmentbodytoseekacaptivecoalmine,thereportsays.InDecember2006,thegovernmentbodythe38yearoldPondicherryIndustrialPromotionDevelopmentandInvestmentCorporation(PIPDIC)hadapparentlynoideatoseekacoalblockuntilitreceivedanunsolicitedofferfromtheprivatefirmJRPowerGenerationPrivateLimited(JRP),whichhadnopriorexperienceincoalminingorpowergenerationforacoalminedevelopmentproject.

Inamatterofweeks,PIPDICtookaformaldecisiontoapproachtheCoalMinistryforallocationofablock.Aweeklater,itsubmittedaformalapplicationtotheMinistry,seekingallotmentofcoalblockequivalentto530milliontonnes(MT).Onthesameday(January17,2007),theCorporationsignedamemorandumofunderstanding(MOU)withJRP,acompanyownedbythefamilyofS.Jagathrakshakan,nowUnionMinisterofStateforInformationandBroadcasting,withoutcarryingoutatechnoeconomicfeasibilitystudyoftheprojectandascertainingtechnicalcapabilitiesoftheprivatefirm,thereportgoesontoadd.

26September2012

Inaninterestinganalyticalpieceonthecoalblockallocationissue,TheHinduBusinessLinenewspaperhassaidthatcompaniescontrolledbystategovernmentssecuredlucrativeblocksandusedthesametofavourprivateminersorendusersofcoal.

Theoretically,itcanbeassumedthatpublicsectorcompanieswillpassonfullbenefitsofassetallocationtothenation,eitherintermsofcheapelectricity,providingcoaltosmallerconsumersatafairprice,orpayinghandsomedividendstothegovernment,thereportsays.

Startingfrom1993,publicsectorundertakings(PSUs)wereofferednearlyhalfofthe195blocksallottedsofar,atfreeofcost.Incomparisonwiththeprivatesector,theStatesectorwasofferedbiggerassets70oddcompanies,outofatotalof289allottees,grabbedapproximately60%ofthegeologicalreservesand,onaprioritybasis.BarringacoupleofCentralgovernmentundertakings,nearly90%ofsuchassetswenttoStateGovernmentownedcompanies.ThebiggestbeneficiariesarethesixcoalbearingstatesofWestBengal(11),Orissa(4),Chhattisgarh(8),Jharkhand(10),MadhyaPradesh(10)andMaharashtra(5),togethercorneringnearlyhalfoftheallocationsthroughthisroute.Amongthenoncoalbearingstates,Karnatakaislargestgainerwithsixcaptiveassets.

Theassetdistributioncoincidedwiththeriseofasectionofprivateminersmostofthemunlistedandenjoyingthestrongbackingoflocalpoliticians.Theyenteredintominedevelopmentandoperation(MDO)contractswithPSUs.Usually,PSUsenterintoaminorityjointventure(26:74)withtheprivateminer.Thejointventureinturnholdsthemining



lease,makingitdifficultforthePSUtochangetheminerintheeventofanydispute.Whatsmore,detailsofsourcingarrangementsbetweenthePSUsandtheprivateminerrunventuresarerarelymadepublic,thereportgoesontosay.

Stateownedcompaniesallowedprivateminerstotappartofthebenefitaccruingfromaccesstoacaptiveassetfreeofcost.AcaseinpointisWestBengal.Beginningmid1990s,theStategenerationutilityenteredagreementswithaprivateminerEMTAgroup.Underthisarrangement,thecostofsourcingcaptivecoalis19.5%cheaperthanthepriceofidenticalvarietiesofcoalproducedbyEasternCoalfields(ECL),thereportsays.Thesacrificeismadebytheendconsumerofelectricity,whopaysanundulyhighpriceforfuelsourcedfromacaptiveasset.Thestateutilitysofarsourcednearly45milliontonnesofcoalayear,fromitsfourcaptiveassets,throughthisroute.Theanomaliescametolightrecently,whenthenewStategovernmentappointedaconsultanttoswitchovertocostlinkedpricingformulafordevelopingnewassets.

Thepossibilityofunearthingamajorscammayincreasemanifold,ifonetakesacloserlookattheassetutilisationpatternoftheStategovernmentownedcommercialminers.Apreliminaryestimatesuggeststhatcommercialminerswereallottedapproximately43assets,nearlyhalfofthetotalallotmentstoPSUs.Ofthese,nearly34blockswenttosixcoalbearingstates.ThetopawardeesinthissegmentareMadhyaPradeshStateMiningCorporation(10)andJharkhandStateMineralDevelopmentCorporation(8).MinersfromBengalandChhattisgarhwereawarded5assetseach.EvensmallerStateslikeAssamorArunachalPradeshwerenotdeprived.Availableinformationsuggeststhatinamajorityofthecases,theStatelevelminerreallottedminesinfavourofselectprivatesectorplayerswhoaremeanttobeendusersofcoal.Itimpliessuchmineswerepracticallyconvertedintocaptiveassetsofachosenfew,thereportfurtheradds.

ThecoalministryhascontestedbeforeaparliamentarypanelthecalculationsmadebytheComptrollerandAuditorGeneral(CAG)whileestimatingthelosstotheexchequerfromtheallocationofcaptivecoalblockstoprivatecompanies,thePressTrustofIndia(PTI)saidinareport.

ThecoalministrysaidthattheCAGsestimateofalossofRs.1.86trillionisflawedonbasicfundamentalsrelatedtothegeologicalsector.

Italsosaidthatthebasicintentofthegovernmentbehindsuchallocationofcoalblockswastoinducerapiddevelopmentofinfrastructurebyinvolvingtheprivatesectortoinvestinidentifiedprioritysectors.

TakingintoaccounttheaveragesalepriceofallgradesofcoalofCoalIndiaLtd(CIL)inopencastminesaswellasaveragecostpriceofallgradesofcoalinthePSUandaddingadditionalfinancialcosts,theCAGhascalculatedafinancialgainofRs.1,85,591.34croretoprivateparties.Theauditorisoftheviewthatapartofthisfinancialgaincouldhavebeentappedbythegovernmentbytakingtimelydecisiononcompetitivebiddingforallocationofcoalblocks,thereportsaid.

InitsresponsetotheCAGreport,theoalministryhastoldParliamentsPublicAccountsCommitteethattransparentprocedureswereobservedwhilerecommendingallocationsbyfollowingabroadpolicyframework.Itistobestatedthatthecalculationofthesaidfinancialgainswereflawedoncertainbasicfundamentalsrelatedtothegeologicalsector,theministryhastoldthePACinawrittensubmission.ThefinancialgainstoprivatepartieshavebeencomputedonthebasisofthedifferencebetweentheaveragesalepriceandtheproductioncostoftheCIL,aswellasestimated



extractablereservesoftheallocatedcoalblocks,theministrysaid.Thiscomputationofextractablereservesbasedonaverageswouldnotbecorrectinthegeologicalsector.Moreover,asthecoalblockswereallocatedtoprivatecompaniesonlyforcaptivepurposesforspecificenduses,itwouldnotbeappropriatetolinktheallocatedblockstothemarketpriceofcoal,thereportcitedtheministryassaying.

Meanwhile,inareportDNAnewspapersaidthattheministriesofpowerandcoalareatloggerheadsontheissueofimportofcoalbyCoalIndiaLtdforprivatesectorcompanies.

WhiletheministryofcoalhasaccusedtheministryofpowerofmootingpoliciesthatwillharmtheinterestsofthePSUCoalIndia,theministryofpowerisdefendingitspoliciesinthegarboflargerinterestofthecountryandpowersecretary,UmaShankarhasaskedtheCILboardanditsdirectorstodosomesoulsearchingontheirresponsibilityandcommitment.Inaletter,S.K.Srivastava,secretarycoalhaslambastedtheministryofpowerformootingtheproposalinwhichCoalIndiaisrequiredtoimport20mtofcoalfortheIndependentProwerProducers.TheproposalwillcosttheCoalIndiaawhoppingRs.3,000crorein201212itself.Overaperiodof20years,theselosseswouldamounttoRs.60,000croreatthecurrentlevel,thereportsaid.

DNAnewspaperreportsthatcoalministerShriprakashJaiswalwillhavetoexplainwhyhisministrysleptoverrequestsfromtheCBIsince2010toinquireacorruptioncaseagainstCMDofWesternCoalfieldLtd(WCL).

Jaiswalalsosatoverthevigilancereportinthecaseforoverayear,thereportsaid.

ThecasepertainstothesubmissionofafakebankguaranteeworthRs.2.24crorebyMsShriSaiConstructionCompanyforthecontractofdiversionoftheMottaGhatcanalatthePadmapuropencastmineofChandrapurarea,WCLworthRs.14crore.Thetenderwaspassedin2007.DocumentsaccessedbyDNAshowthatinMarch,2010,theCBIapprisedtheministryaboutthemisconductofWCLofficials.Italsowrotetotheministry,seekingpermissionofthecentralgovernmenttoconductaninquiryontheroleofDCGarg,CMDofWCL,andajointssecretarylevelofficial.Threemonthslater,theCBIsentaremindertotheministryaboutcarryingoutaninquiry.Failingtogetaresponsefromtheministry,theCBIwrotetotheCentralVigilanceCommissioner(CVC)inOctober2010.TheCBIsaideventheagencysdirectorhadwrittentothecoalministryandsoughtapprovalfortheinquiry.Theletter,accessedbyDNA,said:Thedirector,CBI,hasalsowrittenalettertothesecretary,coalministryforseekingapprovalundersection6AoftheDelhiSpecialPoliceEstablishmentActtoregisteracaseofcriminalmisconductagainstDCGarg,butsofarnoactionhasbeentaken.MrGargcontinuestoenjoyhispostinginthemidstofalltheallegations.Followingthis,theCVCaskedtheministryeithertograntpermissionorexplainreasonsfornotdoingso.TheministryfinallyreferredthemattertotheChiefVigilanceOfficer(CVO)oftheWCLinDecember2010,thereportfurtheradded.

25September2012

Inafreshturnofeventsinthecoalblockallocationsaga,officialsofthesteelministryatthecentreandthosebelongingtotheMaharashtragovernment,couldcomeunderthescanneroftheCentralBureauofInvestigation(CBI),whichisnowprobingallallotmentssince1993.

CBIisprobingtheroleofofficialsofMaharashtragovernmentandUnionsteelministryinconnectionwithpositiverecommendationsgiventoGraceIndustriesforallocationofcoalblockdespiteallegedmisrepresentationsin