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What Manmohan told Sonia in crucial August 31 meeting

Coal-tainted PM says it wasn’t me, names Patel

Sonia’s all-powerful political secy Ahmed Patel cut to size after PM’s revelation last fortnight

Posted On Satu rday, September 15, 2012 at 08:52:36 A M

“The time for big bang reforms has come. If we have to go down, we go down

fighting.”

- Manmohan Singh while chairing a meeting of the Cabinet Committee on Economic

Affairs on Friday

Prime Minister Manmohan Singh’s new combative stance is not limited to Big Bang

announcements like Foreign Direct Investment in retail and aviation.

On August 31, the day he returned from the Non Aligned Summit in Tehran, Manmohan Singh

met UPA chairperson Sonia Gandhi and communicated to her that his office had cleared the

coal block allotment on the recommendation of her political secretary Ahmed Patel.

Changing equations: Manmohan Singh, Sonia Gandhi and Ahmed Patel

Sources close to the development say this has been possibly his boldest political move in this term

as Prime Minister and stemmed from his frustration at the drubbing he was getting in the media and

the aspersions being cast on his integrity.

Ahmed Patel is one of Sonia Gandhi’s closest aides — he has been her political secretary since

2000, and she is known to rely on him greatly in the running of the Congress Party.

Washing his hands of the tainted coal block allotment, Dr Singh made it clear to Sonia Gandhi that

he had no role or interest in determining who the beneficiaries should be.

As he laid the blame for coal allotment squarely at the Congress’ door, the PM explained that his

then principal secretary T K A Nair had merely coordinated the allotment decision as desired by

Ahmed Patel.

While Nair, who is now an advisor to the PM, was not available for comment, Ahmed Patel

categorically denied having any say in coal block allocation. “I have not made any recommendation,”

he said.

Sources say the timing of this meeting-just four days after Sushma Swaraj's comment about the

Congress earning “mota maal” (fat sum) from coal block allotment — was crucial.

While the Prime Minister had countered Sushma in Parliament with a now not-so cryptic couplet

about the virtues of silence (Hazaaron jawaabon se achchhee hai merii Khamoshii/ na jaane kitne

sawaalon ki aabroo rakkhe), a livid Sonia Gandhi had lashed out at the BJP for making

unsubstantiated allegations. However after her meeting with the

Prime Minister Sonia Gandhi personally reached out to Sushma Swaraj to restore normal functioning

of the Parliament.

But the biggest fallout of the meeting was Mrs Gandhi’s quick response to the Prime Minister's

revelations. In a move, bound to reassure him, she conveyed to Ahmed Patel that she was not

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revelations. In a move, bound to reassure him, she conveyed to Ahmed Patel that she was not

happy with his role in the coal block allotments.

This was done while she was abroad for her medical check-up last fortnight. In another clear signal

of his fall from grace, the Congress chief held a

strategy meeting with Rahul Gandhi and old party warhorses like ML Fotedar, RK Dhawan and

Suman Dubey while keeping out her political secretary, something almost unthinkable until

recently.

“There is every possibility Ahmed Patel may return to his old job as treasurer of the Party while the

task of devising political strategy may be taken up by a select panel of people or even that a senior

leader like Digvijay Singh might get chosen to step into Patel’s shoes,” said a senior party

functionary on the condition that this newspaper not name him.

Used to a quiescent Prime Minister, Dr Singh’s plain speak on the powerful political secretary has

shocked many and will no doubt change the power equations within the party. What surprised

Congressmen most is the fact that the Prime Minister chose to bring up for discussion what has

been an open and prickly party secret.

What was the PM referring to?

Sources said the PM was referring to nearly half of the allotment of 142 coal blocks between

July 2004 and 2011 that have been pointed out by the Comptroller and Auditor general as

faulty.

Out of the One hundred and forty two, 75 coal blocks were allotted to private parties and 67

to government-owned public sector undertakings. Out of the 75 allotted to private parties, 57

recipients were allotted blocks with open cast or mixed mines, of which 56 were not mined at

all.

Sources pointed out that the CAG itself has recorded that initially the PMO in its meetings

and communications with Coal Ministry — July 25, 2005 and August 9, 2005 — had pressed

for operationalizing competitive bidding as that would enable the Government to tap “windfall

profit” accruing to companies that were allocated captive coal blocks.

However instead of ushering in competitive bidding through an executive order in July 2006, it

dragged its feet for six years under political pressure to notify changes in law.

"Denial by PMO on Pune Mirror newspaper report":

The attention of the Prime Minister's Office has been drawn to a news story published in Pune

Mirror today, 15th September, 2012.

The allegation that the Prime Minister talked to the UPA Chairperson and communicated to her

that his office had cleared the coal block allotment on the recommendation of her political

secretary is completely untrue. This is a scurrilous, irresponsible and mischievous report. It is

hoped that other newspapers or media outlets do not reproduce or repeat the baseless story.

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