[India_Vision_2020] Fwd: [prpoint] Coal scam breaks the 2G scam record

Dear Dr CVNR Sir,

As desired, the following is gathered and placed below:

The coal rich countries in the World are China, USA, India, Australia, South Africa, Russia, Indonesia, Poland, Kazakhstan, Colombia, Canada etc. China produces almost half of world's coal; Australia exports the most coal dug in that country.

"A comparative study on grant of mining lease in Australia, Canada and India, included in the Report of the Expert Group constituted by the Ministry of Steel for formulating Guidelines for Preferential Grant of Mining Leases (2005), suggests that the time taken for grant of mining lease in Australia is about 1-2 years (12 + months) and in Canada about 2-3 years (12-36 months) as compared to 7-8 years in India (though the Mineral Concession Rule 8 provides that the State Government shall dispose off the application for grant of mining lease within 12 months from the date of receipt of application)".

Australia: Time taken for grant of Mining Lease is 1-2 years. State is fully empowered to grant mining lease.Single window process, involving 4 agencies: Department of Minerals & Energy, Department of Environment, National Native Title Tribunal, Land Acquisition Authority in Local Government. Minister of Minerals and Energy is the final approving authority, and takes decisions in consultation with other Ministries. Close interaction between Department of Minerals and Energy and agencies responsible for protection of environment. Mining areas are categorized as per environmental sensitivity. Conditions & procedures for each category are predetermined and identified in each case. Grant of mining leases in very sensitive areas require approval from both houses of Parliament. Applicant is required to submit a Bond to take care of environmental and rehabilitation considerations. Financial & technical strength of the applicant are taken into consideration before grant of mining lease.

Canada: Mostly follows Australia

India: Although time frame for clearances & approvals are specified as less than an year in the various rules, the actual time taken are usually
7-8 years for grant of Mining Lease. State to grant mining lease with the approval of the Central Government. Approvals are required from multitude of authorities at the Central, State and District levels, with the different authorities having little or no coordination amongst them. Broadly 3 different clearances requiring submission of separate applications. Limited emphasis being given on the technical and financial strength of the applicant.

Source: Mining Approvals in South Australia, Division of Minerals and Energy Resources, Government of South Australia, June 2007

The prime findings in the performance audit on allocation of coal, released by the Supreme Audit Institution of India [CAG] may be seen here.

There were no criteria for allocating coal blocks for captive mining till 1993. The process of bringing in transparency and objectivity began in January 2004. However, the process has experienced delays and had yet to materialize as of February 2012.
In the intervening period, 194 coal blocks with geological reserves of 44,440 million tonnes were allocated to private and government parties until March 31, 2011. The report finds that the benefit to private allottees has been estimated at Rs 1.86 lakh crore for Opencast mines. The report states that the government could have tapped some of this financial benefit by expediting the decision on competitive bidding for allocation of coal blocks.
The rate of increase in production of coal by Coal India Limited (CIL) during the 11^th Plan period remained below the target set by the Planning Commission. Capacity addition projects were delayed due to the lack of coordination of government agencies involved in statutory clearances and land acquisition. There were mismatches in excavation and transportation capacities of mines, and suboptimal use of Heavy Earth Moving Machinery.
The CAG recommends that Ministry of Coal (MoC) should work out modalities to implement the procedure of allocation of coal blocks for captive mining through competitive bidding.
The CAG recommends that the MoC should constitute an empowered group along the lines of Foreign Investment Promotion Board as a single window mechanism for granting clearances, with representatives from central nodal ministries and state governments.

The full report may be seen at the CAG website: http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2012_2013/Commercial/Report_No_7/Report_No_7.html

Regards,

On Sun, Aug 19, 2012 at 6:38 AM, Shivshankar Surkund <snsurkund@yahoo.com> wrote:

Hi there,

Coupleof months back, when this matter was reported in Media (before CAG report was officially presened) congress and put a very brave front and had said it is nothing but 'mud slinging'. Whether current PM is directly connected with this scan or not, it has been perpetrated when he was the Minister in charge.

With this, has the rank of India in 'corrupt country' must have scaled high ?

The 'beneficiaries' of thisscam too, should not be let go 'scot free' apart from those who connived to happen. Only time can say what could happen.

s.n.surkund

--- On Sat, 8/18/12, Deepak Kanulkar <deepak@gri.co.in> wrote:

From: Deepak Kanulkar <deepak@gri.co.in>

Subject: Re: [prpoint] Coal scam breaks the 2G scam record - CAG report submitted
To: prpoint@yahoogroups.com
Date: Saturday, August 18, 2012, 12:49 AM

Dear friends,

The damage of such scams is much much more than Rs 1.86 lakh crores. Internationally, it has caused something like a 'crisis of confidence' as far as India is concerned. These scams hugely damage the reputation of Brand India, amongst international audiences. On the one hand, while India is known for its qualified, talented, hardworking, english speaking human resources; on the other hand India is defamed because of such serial scams which have not achieved a great level of 'consistency'.

Mr Hansraj Ahir has done a great job by whistle blowing, however harsh punishment should meted out to the unscrupulous people behind these scams.

regards

Deepak

On Aug 18, 2012, at 7:14 AM, Shivshankar Surkund wrote:

Hi there,

If not in any thing else (not even one Gold medal in Olympics) we boast of beating our own records in 'new scams' involving lossto nation amounting o over lacs of crores.

Now the 'Bofor scam' appear to be 'pittance'.

s.n.surkund

--- On Fri, 8/17/12, S. Narendra <sunarendra@gmail.com> wrote:

From: S. Narendra <sunarendra@gmail.com>
Subject: Re: [prpoint] Coal scam breaks the 2G scam record - CAG report submitted
To: prpoint@yahoogroups.com
Date: Friday, August 17, 2012, 4:15 AM

Dear Srinivasan:

great contribution from you in recognizing active parliamentarians dedicated to public service.It is such few representative who give us hope that one day Lok Sabha transforms itself into the true Lokpal. Until 1960s Parliament was the vigilante.Now it has become a closed shop union. Only the moneyed,and family members can get in.

At the legislatures the picture is very bleak,Some legislatures meet for hardly 50-60 days in a year and rarely conduct any decent business.I was sitting in the room of the Secretary of Karnataka legislature. behind was a board that displayed the number of days the state assembly had met. In 1950s-60s,average number of days were 170-180.In the decade of 2000,there was a year when it had met for ,believe me,17 days.

Can we have an award for state legislatures that meet and decently conduct business for 150 days in a year?

S.narendra

On 17 August 2012 01:48, Prime Point Srinivasan <prpoint@gmail.com> wrote:

dear all

Today the Government has placed the CAG report on 'coal scam' in the Parliament. According to the report, 159 coal blocks were given to private operators without following procedures and it has resulted in a gain of Rs.1.86 lakh crores to these private operators.

Mr Hansraj Gangaram Ahir (BJP MP from Chandrapur, Maharashtra) is the whistle blower of this scam. Almost from 2005, he has been drawing the attention of the Government and Prime Minister on this scam. Because of his sustained efforts, CAG took up this issue for investigation and now CAG has submitted its report. This will be again placed before Public Accounts Committee for investigation and discussion.

Mr Hansraj Gangaram Ahir has been receiving the top parliamentarian Award (Sansad Ratna Award) from Prime Point Foundation for the past three years, since 2010 for his top performance in the Lok Sabha. He is also the member of our India Vision Group. On many occassions, he has also taken up the education loan problems in the Lok Sabha, based on our suggestions. We congratulate Mr Hansraj for his sustained efforts in exposing the scam. He is also presently the standing committee member of coal and mines. When such a massive scam is being exposed, generally, we ignore the 'heroes' behind such exposure. That is why, I am sharing this information for the information of all the members.

It may be noted that as per CAG report, 2G scam involved around Rs.1.76 lakh crores. Now this coal-scam, as per CAG report, involves around Rs.1.86 lakh crores.

Srinivasan

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