The Jharkhand coal scam had hit the headlines in after an audit report by Comptroller and Auditor General of India (CAG) revealed that. The coal allocation scam, popularly known as ‘Coalgate’ in media. At the initial report of CAG only said that the blocks of coal could have been allocated with. The government’s thrust after the coal scam report by the Comptroller and Auditor General of India (CAG) is in the direction of cancelling allocations of coal.
|Published (Last):||1 October 2004|
|PDF File Size:||20.97 Mb|
|ePub File Size:||16.58 Mb|
|Price:||Free* [*Free Regsitration Required]|
Explained: What is the coal scam all about in which former Jharkhand CM Madhu Koda was held guilty
Note, these are still huge coal volumes compared to India’s annual production and represent many decades of the actual coal needs of the captive firms.
Until the other day—that is before the Supreme Court delivered its advisory opinion—the dominant view was that all scarce natural resources should be auctioned, otherwise the allocation would be tantamount to causing loss to the exchequer.
Accusations ranged from malicious means for securing allocation, overstating net worth, non-disclosure of prior allocation and hoarding rather than the development of allocated resources.
Therefore, aggregating the purported financial gains to private parties merely on the basis of the average production costs and sale price of CIL could be highly misleading. This page was last edited on 12 Decemberat An inter-ministerial group IMG is reviewing the allocation of 58 coal fields to companies that were issued show-cause notices and will submit a report by 15 September, coal minister Sriprakash Jaiswal said.
Apart from the cancellation, operational mines will have to pay a penalty of Rs.
CAG REPORT ON COAL BLOCK ALLOCATION PDF
However, this was to be done via competitive bidding. Surgical Strikes At LoC: Moreover, as the coal blocks were allocated to private companies only for captive purposes for specified end-uses, it would not be appropriate to link the allocated blocks to the price of coal set by CIL.
You may have well laid down policy but was it implemented? On September 24,Supreme Court quashed allocation of coal blocks. The panel has members from other Ministries including Steel and Power.
Businessman Naveen Jindala lawmaker who belongs to the Congress, is not new to controversy or even taking a stance independent of his party. Large companies under review by an inter-ministerial group IMG looking into coalfield allocations have had mixed results. An engineering, procurement and construction EPC contract works like this: The parallels with the adverse impact of the 2G scam on telecom stocks are obvious.
Retrieved 14 September Amid media reports rrport undue benefits of Rs. Coal minister Sriprakash Jaiswal cancelled the allotment of coal blocks to four companies and decided to encash the bank guarantee of one of them, the coal ministry said on Thursday, in what seemed to be a tacit admission of a faulty natural resources policy and holding out the prospect of more such terminations.
Tell us what you didn’t like in the comments. Norm violated by government to favour Naveen Jindal”. Incoal secretary P C Parakh informed PM the potential fraud inherent in the discretionary allocation of the captive coal fields and objected to it in writing. Special CBI judge OP Saini said in his judgement today that the prosecution had failed to prove the guilt of the accused cosl reasonable doubt.
Vinod Rai, CAG report in middle of controversy
The JSPL spokesperson said the company’s coal blocks are being de-allocated “despite best efforts made by the company and no fault on part of the company. On Urtan North block, the third to be de-allocated block jointly allocated with MonnetJSPL spokesperson said that its Mine Plan is pending for final approval from Coal Ministry for more than six months now. The premium earned by these new companies was estimated to be the true value of the spectrum.
After being censured by the Comptroller and Auditor General of India CAG for alleged irregularities in the allocation of captive coal blocks to companies, the coal ministry has asked the allottees to submit details related to the projects for which the fields were awarded to them.
Over the years, 80 coal fields have been taken back while guarantees in 42 cases have reoort forfeited. It is interesting to note the similarities and differences in the coal block and 2G spectrum allocation controversies. Monnet, which is also a partner in the block, also echoed the same. Relevant discussion may be found on the talk page.
Anna Hazare has postponed a press conference he was to address this morning saying he needed time to collect “more information”, a day after Team Anna member Kiran Bedi advised his close aide to “fully brief” the activist on allegations against Prime Minister Manmohan Singh. Madhu Koda and HC Repory in another case pertaining to alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand.
The government is worried that loans given by banks to companies being investigated over scanfal in the allotment of coal mines may turn bad, and has asked them to collate information on such debt. This article has multiple issues. The allocation of coal blocks and the previous allotment of 2G spectrum have been the subject of controversy for a while now. A report of the parliamentary standing committee said that the allocation of blocks between and had been unauthorised.
Initially, the Government had initiated a proposal to introduce competitive bidding by formulating appropriate rules. The CAG report, leaked to the press in March as a draft and tabled in Parliament in August, is a performance audit focusing on the allocation of coal blocks and the performance of Coal India in the —09 period. The Supreme Court on Monday held that all coal block allocations made since till before pre-auction era during previous NDA and UPA regimes have been done in an illegal manner by an “ad-hoc and casual” approach “without application of mind”.
Comptroller and Auditor General of.
Still all the coal blocks were allocated without auction during the Prime Minister’s tenure in the coal ministry. The Income Tax Department scanral also roped in to look into the financial frauds and follow the money trail.
Using the principles of finance used to value assets and companies, one can build scandao strong case why the defence put forward by Chidambaram is incorrect. Other parts of the report, however, suggest that while an administrative decision might be sufficient legal basis for instituting competitive bidding, the “legal footing” of competitive bidding would be improved if the statute were amended to specifically provide for it.
It was cozl noted that the legislative changes that would be required for the proposed change would require considerable time and the process of allocation of coal blocks for captive mining could not be kept in abeyance for so long given the pressing demand for coal.
State-owned Coal India Ltd CIL expects the government to give it the fields that have been recently taken away from private firms.