COAL ILLEGAL MINING & ELECTION BLACK MONEY
Coal black marketing in India for whom? Why everybody is silent ?Who is getting money?Former Prime Minister Indira Gandhi had in 1973 nationalized coal.This had minimized the black racketeering of coal and coal had become available at government notified rates all over the country. This is the tale of 2006-2007 when Shibu Soren was in jail and the Prime Minister Manmohan Singh was holding the coal ministry. In this period Dasi Narayan and Santosh Bagdodiya were ministers of state for coal. It was under the Prime minister that the coal ministry gave out the maximum number of captive coal blocks free of cost. The most glaring and blatant fact is that the coal mines were given out free at the lower than nominal cost of Rs. 100 royalty per ton of coal that would be extracted. It was done at a time when the market price of coal was over Rs. 2000 per ton.Manmohan Singh gave away 63 blocks for free. During these four years (2006-2010) almost 175 blocks were gifted to brokers and capitalists of different shades.
When this issue was brought to the notice of the Parliament, the government ignominiously declared that it would not allocate coal blocks further without amending the Mines and Minerals Act, 1957, which would bring in the clauses pertaining to open bidding process. Also again when the Bill was moved in the Rajya Sabha it was agreed that no further allocation of coal blocks would be undertaken unless both the houses passed the Bill into an Act. Why Government is not respecting our parliament?
What came out was numbing. Actually the act of giving captive coal blocks to private companies started in 1993.From 1993 to 2010 208 blocks of coal were allocated for free. This tantamount to coal reserves of 49.07 billion tons. Out of the 208 blocks 113 blocks were given to 184 private companies for free. This amounted to coal reserves equal to 21.69 billion tons. If the value of this coal is calculated at the market price of Rs. 2500 per ton, it comes out to 5,382,830.50 Crores. If out of this Rs. 2500, Rs. 1250 is deduced giving space for Rs. 850 as cost of production, transportation etc and Rs. 400 is deduced as profit, then also the country was inflicted a revenue loss of about 26 Lakh Crores.
Till 2003 40 blocks had been allocated. Out of this only 24 have started production. So why have the licenses of the rest of the 16 companies not cancelled? In 2004 four blocks were allotted and none has started production. Similarly, in 2005 22 blocks were allotted and only 2 have started production. In 2006 52, 2007 51, 2008 22, 2009 16 and in 2010 0ne block was allotted. But the report till 18th January says that none have started production.
It is indefensible. Mining Development Corporation of Maharashtra also got some free coal blocks from Coal India. These were Agarjhari, Varora, Marki, Jamni, Adakuli, and Gare palma etc. later the corporation sold these blocks to private companies thus earning a profit of 750 Crores for the state coffers.Why Government is doing because politicians need money for upcoming election.
ALSO READ—- https://myeconomist.wordpress.com/coal-mafia-in-eastern-india/
COMPANIES THAT BENEFITED FROM THIS–