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Lok Sabha passes coal mines bill

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File photo shows trucks waiting to load coal at a mine in Ramgarh. The Lok Sabha on Friday passed a bill which provides for fresh auction of 204 coal blocks de-allocated by the Supreme Court.

File photo shows trucks waiting to load coal at a mine in Ramgarh. The Lok Sabha on Friday passed a bill which provides for fresh auction of 204 coal blocks de-allocated by the Supreme Court.

The government on Friday assured the Lok Sabha that Coal India Ltd., would not be denationalised. “We are in fact strengthening it,” said Union Minister of State for Coal Piyush Goyal while steering The Coal Mines (Special Provisions) Bill, 2014, through the Lower House with a voice vote.

Though some Opposition parties made out a case for referring the Bill to the Departmental Standing Committee, their resistance to the draft legislation petered out by the time the discussion was wrapped up. The Opposition strategy appeared to be to force the Bill to a Select Committee in the Rajya Sabha, where it has the strength to do so; using the Lok Sabha merely to voice their reservations, particularly on the end use clause which has “left a door open for discretion.”

With the Opposition questioning the government’s haste in pushing the Bill without scrutiny, Mr. Goyal said such “alacrity” was needed owing to the Supreme Court order cancelling allocation of 204 coal blocks. “The government had to take the Ordinance route to address apprehensions of job losses and ensure power supply.” Dismissing the demand for referring the Bill to a Standing Committee, he said it essentially replaces the Ordinance which has been widely debated and ``no provision has been criticised in the public debate.”

Earlier, Jyotiraditya Scindia (Congress) and Kalyan Banerjee (Trinamool) pointed out that there was no provision in the Bill to improve the work conditions of coal miners. Mr. Scindia, a former Power Minister, said the government was wasting a “wonderful opportunity to recast the coal sector.” The Bill, he stressed, needed to meet certain objectives — reduce the coal deficit, and make the mining process more scientific and cost efficient. Pitching for a differential coal block allocation system, he said there should be a price ceiling and reverse auction for regulated entities, while for unregulated entities, the idea should be to maximise revenues through auction.

Mr. Bannerjee wanted to know why the Bill’s provisions did not include anything about how to strengthen Coal India and its subsidiaries took umbrage at the Minister suggesting that political parties should not oppose the Bill as States with mines would get money: “Mines are properties of States... You are not giving any charity... [You are] making money from State governments’ property....”

Tatagatha Satpathy (BJD) also made a similar point about the “belligerence with which a thought is being pushed forward that all regional parties and politicians should keep quiet primarily because the proceeds of the bids will go to State governments.”

He also described the definition of “end use” in the Bill as “suspicious” as it spoke of ‘any other use as specified by the Central government. This meant, he stressed, that “a huge door” was being kept open for “discretionary practices.”

Coal block allocation: chronology of events

July 14, 1992

A number of coal blocks, which were not in the production plan of Coal India Ltd and the Singareni Collieries Company Limited (SCCL), were identified and a list of 143 blocks were prepared.

1993 to 2010

A total of 70 coal mines or blocks were allocated between 1993 and 2005, 53 in 2006, 52 in 2007, 24 in 2008, 16 in 2009 and one in 2010. In all, 216 blocks were allocated between 1993 and 2010, out of which 24 were taken away at different points in time, effectively leaving the total number of allocated blocks at 194.

March 2012

CAG’s draft report accuses govt of ‘inefficient’ allocation of coal blocks 2004-2009; estimates windfall gains to allottees at Rs 10.7 lakh crore.

May 29, 2012

Prime Minister Manmohan Singh offers to give up his public life if found guilty in the scam. May 31, 2012: CVC, based on a complaint of two BJP MPs — Prakash Javadekar and Hansraj Ahir — directs a CBI enquiry.

June 2012

Coal ministry forms an inter-ministerial panel to review the process of allocation of blocks and to decide either on de-allocations or forfeiture of bank guarantees. Since then, the government has taken back about 80 coal fields while bank guarantees in 42 cases have been forfeited.

August 2012

CAG’s final report, tabled in Parliament, tones down loss to exchequer figure to Rs 1.86 lakh crore.

August 25, 2012

Govt claims CAG’s presumptive loss theory flawed, no mining yet.

August 27, 2012

PM says CAG flawed; “The observations of the CAG are clearly disputable”

September 6, 2012

PIL in SC seeks cancellation of 194 coal block allotments. Supreme Court begins monitoring the CBI probe into the coal field allocations.

March 2013

The Apex Court asks CBI not to share probe details with govt.

April 23, 2013

Standing Committee on Coal and Steel, in a report tabled in Parliament, says coal blocks distributed between 1993-2008 done in unauthorized manner. Says allotment of mines where production not started should be cancelled.

April 26, 2013

CBI Director Ranjit Sinha submits affidavit saying investigation report shared with law minister Ashwani Kumar.

May 10, 2013

Ashwani Kumar resigns.

June 11, 2013

CBI registers first information report (FIR) against Naveen Jindal and Dasari Narayana Rao.

October 16, 2013

CBI files an FIR against industrialist Kumar Mangalam Birla and former coal secretary PC Parakh.

July 2014

The Supreme Court sets up a special CBI court to try all coal field allocation cases.

August, 2014

The CBI decides to close its case against Birla and Parakh.

Published - December 12, 2014 05:53 pm IST

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