The UPA-2 has been rocked by scam after scam, the latest being Coalgate – a term that defines the corruption embedded in the allocation of coal blocks to different bidders at a price that is far below market rates. In August 2012 the Comptroller and Auditor General(CAG) had pointed out that 142 coal fields allocated between 2004 and 2009 allowed beneficiaries to make staggering benefits of up to Rs 1.86 lakh crore as mining rights were given at undervalued rates instead of using the auction route. This is similar to what happened in the 2-G scam. Such malfeasance is repeated with frequency in this country, which ironically does not have enough money to build up a robust health care system, or to revamp the education system.
In a draft report issued in March 2012, the (CAG) accused the Government of allocating coal blocks in an inefficient manner during the period 2004–2009. Later the BJP lodged a complaint which resulted in a CBI probe into whether the allocation of the coal blocks was in fact influenced by corruption. The CAG’s argument is that the Government had the authority to allocate coal blocks by a process of competitive bidding, but chose not to. As a result both public sector enterprises (PSEs) and private firms paid less than they should have. This is gross abuse of the State’s resources by a Government which is the custodian of the public exchequer. Coal allocation is the brief of the Prime Minister’s Office (PMO) but Dr Manmohan Singh continues to deny that there was any wrongdoing. In response to a complaint by the BJP, the Central Vigilance Commission (CVC) directed the CBI to investigate the matter. The CBI has named a dozen Indian firms in its FIR which accuse the bidders of overstating their net worth, failing to disclose prior coal allocations, and hoarding rather than developing coal allocations. The CBI has speculated that corruption cannot be ruled out.
Parliament has been stalled on account of Coalgate even as the Law Minister is seen to be defending the indefensible. There is a clamour for the resignation of Law Minister, Ashwini Kumar and also of the Prime Minister. Prime time television has been hammering on the issue night after night. The Parliamentary Standing Committee report on Coal and Steel states that all coal blocks distributed between 1993 and 2008 were done in an unauthorized manner and allotment of all mines where production is yet to start should be cancelled.
Corruption has become the hallmark of the UPA-2 and the Prime Minister’s personal integrity can no longer act as the fig leaf for it. Will this country be able to afford another government headed by the UPA in 2014?