THE GREAT COAL ROBBERY

THE GREAT COAL ROBBERY

The gigantic scandal involving allotment of coal blocks to various private companies and

the consequent loss of revenue to the Government has shaken the nation's conscience. This

has come within two years of the equally shocking scandal of manipulated allotment of scarce

spectrum to certain favoured entities at throwaway prices causing an estimated loss of Rs 1.76

lakh crore to the exchequer. The Great Coal Robbery has sharply dented the image of Prime

Minister Manmohan Singh, hitherto perceived as a leader with impeccable integrity and personal

honesty.

The Coalgate scam happened over a sustained period, coinciding with the UPA coming to

power in 2004 and peaking in 2008-09. During this perod new coal blocks were allotted to all

and sundry free of cost with the apparent purpose of expediting new power projects, apart

from augmenting steel and cement production. Ironically, on assuming office, Dr Manmohan

Singh initiated the move to award coal blocks by auctioning instead of the existing system of

free allocation through the Screening Committee route. The reason for the proposed change

was the spurt in coal prices both international and domestic and healthy growth of the economy

during six years of NDA rule under the leadership of Shri Atal Bihari Vajpayee. Ironically,

it was the PMO, which in 2004 itself, circulated a note opposing transition to the auction system

and favoured continuation of the Screening Committee procedure.

What followed thereafter was an incredible scramble for acquiring coal blocks by companies

big and small. Lobbying by certain individuals close to the ruling party was hectic and they

grabbed the bulk of blocks up for distribution. How much money changed hands to influence

this illicit acquisition process is anybody's guess. Having acquired thousands of acres of valuable

land, including forests and agricultural lands, many of the companies successfully cashed

in by increasing their share prices. They also sold a portion of their equity in companies that

were allotted the mines, to line the pockets of the promoters. Very few began actual production

of coal; in fact 58 out of 59 blocks allotted during this period to private players have not

extracted even one tonne of coal from the mines they own!

The nation is obliged to the CAG for putting a figure (Rs 1.86 lakh crore) on this scandal,

although this might eventually turn out to be an underestimate. The BJP, both inside and outside

Parliament, has consistently raised its voice over this merry loot of India's principal source

of energy by unscrupulous business groups in cahoots with UPA politicians, including senior

Ministers. All this happened under the active gaze of the Prime Minister who held the Coal

portfolio for most of the time in UPA I.

This volume, a compilation of frequently asked questions and BJP leaders' writings on the

subject is being published in a bid to help people, particularly BJP activists, to expose the

biggest swindle since Independence.