IMPHAL: Union minister of State for Defence, Pallam Raju has categorically clarified on the Coalgate and said the Opposition BJP has been misleading the general public on the issue.
It can be noted here that 13 days of the functioning of Parliament were lost due to the disruption of the sessions by the BJP demanding the resignation of Prime Minister Dr Manmohan Singh.
“Coalgate is a political scandal concerning the Indian government’s allocation of the nation’s coal deposits to public sector entities (PSEs) and private companies. In a draft report issued in March 2012, the Comptroller and Auditor General of India (CAG) office accused the Government of India of allocating coal blocks in an inefficient manner during the period 2004-2009. Over the Summer of 2012, the opposition BJP lodged a complaint resulting in a Central Bureau of Investigation probe into whether the allocation of the coal blocks was in fact influenced by corruption.The essence of 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.[2] As a result both public sector enterprises (PSEs) and private firms paid less than they might have otherwise.”
Addressing a press conference in Imphal today upon his arrival, Pallam Raju while condemning the act of the BJP for disrupting the proceedings of Parliament, both the Lower House and the Upper House in recent time over the Coalgate, clarified that the policy of the allocation of coal blocks to private parties, which the CAG criticised, was not a new policy introduced by the United Progressive of Alliance (UPA). According to the Union minister of State for Defence, the policy has existed since 1993 and previous governments also allocated coal blocks in precise manner that the CAG has now criticised. “In fact, between 1998 and 2004, when the National Democratic Alliance (NDA) was in power, captive coal blocks were allocated to 16 sector companies and 16 blocks to government sector companies without following any transparent procedure,” added Pallam Raju.
The Defence minister then claimed that the Prime Minister had made improvements in the procedure in 2005 by taking measures such as by inviting application through open advertisements after providing details of the coal blocks on offer along with the guidelines and the conditions of allotment.
And that, these applications were examined and evaluated by a broad based steering committee with representatives from governments, related ministers of the central government and the coal companies, according to Pallam Raju. He also added that every company that has allotted a coal block was required to submit a bank guarantee.
“Subsequently while finalising the amendments in the MMDR act the Prime Minister also decided that the bidding amount for the coal blocks would accrue to the states in addition to the royalty which they are already getting,” stated Pallam Raju.
He however said that the government has full respect for the CAG, the report on coal block allocation is flawed and Coal Ministry’s version has not been asked for by the CAG before finalising its reports, as is the tradition. The observations of the CAG are disputable, asserted the Union minister of State for Defence.
Accusing the BJP of double-speak, Pallam Raju said instead of demanding the resignation of the Prime Minister, the top leadership of the BJP should resign for misleading the country. “It is the UPA which brought changes in the system of allocations, not the NDA. It was the UPA which opted for competitive bidding, not the NDA. It was the UPA which amended the MMDR Act bringing all states on board and not the NDA,” claimed Union minister of State for Defence Pallam Raju in Imphal on Monday. (NNN)
