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LATEST NEWS UPDATES | Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh </title>
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-The Indian Express
While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled..."/>
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-The Indian Express
While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled..." />
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<h1 class="cat-box-title">Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh</h1>
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Published on</span><span class="text-date"> Aug 23, 2012</span>
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<div style="text-align: justify">-The Indian Express</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled by the Opposition at the time had raised the red flag when the Centre proposed the competitive bidding route in 2005.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Centre had cited the lack of “transparency and objectivity” in the existing system of allocation while proposing the auction route. However, BJP-ruled Chhattisgarh and Rajasthan, BJP-BJD-ruled Orissa and Left-ruled West Bengal had opposed the Centre’s move in writing, raising a range of issues from federalism to adverse impact on iron/steel industrial undertakings and power projects.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In its report tabled in Parliament last week, CAG estimated a monumental loss to the exchequer because of the auction route not being followed on allocation of coal blocks.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The stand taken by the states:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">RAJASTHAN</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PM dated April 11, 2005, then chief minister Vasundhara Raje said that while there were no known deposits of coal in the state, the proposed change in allotment of lignite “would not be appropriate” due to the following reasons:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It was against the spirit of the Sarkaria Commission’s recommendations;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) It would take away the state’s prerogative in selection of the lessee;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) Lignite was proposed to be used in the state primarily for power generation. Allocation of lignite through competitive bidding followed by negotiation with the state government as regards purchase of power and other terms would put the state in a position of disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The proposed process might result in lignite being mined by the successful bidder for use in locations outside the state.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">CHHATTISGARH</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter dated March 28, 2005, to the secretary, Union Ministry of Coal, the Chhattisgarh chief secretary raised the following issues to oppose competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It will result in “substantial increase” in the cost of coal, an essential input, to iron/steel industrial undertakings which do not have access to captive coal blocks allotted on nomination basis;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) Iron/steel industries in inland locations, which don’t have access to coal blocks, would be rendered “non-competitive and thereby unviable”;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Chhattisgarh also suggested that the existing allotment process be made transparent and objective by bringing in financial and technical criteria.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">ORISSA</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PMO on July 25, 2005, the Orissa commissioner-cum-secretary raised the following objections to competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) Existing investors in the mineral sector who are not allocated coal blocks would be at a serious disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) States with rich mineral resources will be at a serious disadvantage as their authority to “recommend cases” for allocation of captive coal blocks on the basis of investment will not be available after the proposed amendment;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) States won’t be able to “leverage” their coal reserves to accelerate industrial development.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">WEST BENGAL</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the Union coal secretary on 31 March 2005, the West Bengal chief secretary opposed any change in the policy citing the following:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) The present system takes care of both “subjective and objective aspects” of the projects for which coal block for captive mining is applied for, whereas the system of allocation through competitive bidding proposes to allocate coal blocks only on the basis of the highest price offered;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) The present system allows priority to power generation industries;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) In the present system, views of the state governments are considered. The proposed system may have an impact on states’ efforts towards industrial development;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The present system takes care of decentralisation of industries in states whereas the proposed system could lead to concentration of industries in a particular state.</div>
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<br><a href="http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/" class="re" target="_blank">The Indian Express, 23 August, 2012, http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/</a><div class="clear"></div>
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LATEST NEWS UPDATES | Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh </title>
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While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled..."/>
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<h1 class="cat-box-title">Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh</h1>
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Published on</span><span class="text-date"> Aug 23, 2012</span>
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<div style="text-align: justify">-The Indian Express</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled by the Opposition at the time had raised the red flag when the Centre proposed the competitive bidding route in 2005.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Centre had cited the lack of “transparency and objectivity” in the existing system of allocation while proposing the auction route. However, BJP-ruled Chhattisgarh and Rajasthan, BJP-BJD-ruled Orissa and Left-ruled West Bengal had opposed the Centre’s move in writing, raising a range of issues from federalism to adverse impact on iron/steel industrial undertakings and power projects.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In its report tabled in Parliament last week, CAG estimated a monumental loss to the exchequer because of the auction route not being followed on allocation of coal blocks.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The stand taken by the states:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">RAJASTHAN</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PM dated April 11, 2005, then chief minister Vasundhara Raje said that while there were no known deposits of coal in the state, the proposed change in allotment of lignite “would not be appropriate” due to the following reasons:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It was against the spirit of the Sarkaria Commission’s recommendations;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) It would take away the state’s prerogative in selection of the lessee;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) Lignite was proposed to be used in the state primarily for power generation. Allocation of lignite through competitive bidding followed by negotiation with the state government as regards purchase of power and other terms would put the state in a position of disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The proposed process might result in lignite being mined by the successful bidder for use in locations outside the state.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">CHHATTISGARH</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter dated March 28, 2005, to the secretary, Union Ministry of Coal, the Chhattisgarh chief secretary raised the following issues to oppose competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It will result in “substantial increase” in the cost of coal, an essential input, to iron/steel industrial undertakings which do not have access to captive coal blocks allotted on nomination basis;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) Iron/steel industries in inland locations, which don’t have access to coal blocks, would be rendered “non-competitive and thereby unviable”;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Chhattisgarh also suggested that the existing allotment process be made transparent and objective by bringing in financial and technical criteria.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">ORISSA</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PMO on July 25, 2005, the Orissa commissioner-cum-secretary raised the following objections to competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) Existing investors in the mineral sector who are not allocated coal blocks would be at a serious disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) States with rich mineral resources will be at a serious disadvantage as their authority to “recommend cases” for allocation of captive coal blocks on the basis of investment will not be available after the proposed amendment;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) States won’t be able to “leverage” their coal reserves to accelerate industrial development.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">WEST BENGAL</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the Union coal secretary on 31 March 2005, the West Bengal chief secretary opposed any change in the policy citing the following:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) The present system takes care of both “subjective and objective aspects” of the projects for which coal block for captive mining is applied for, whereas the system of allocation through competitive bidding proposes to allocate coal blocks only on the basis of the highest price offered;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) The present system allows priority to power generation industries;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) In the present system, views of the state governments are considered. The proposed system may have an impact on states’ efforts towards industrial development;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The present system takes care of decentralisation of industries in states whereas the proposed system could lead to concentration of industries in a particular state.</div>
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<br><a href="http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/" class="re" target="_blank">The Indian Express, 23 August, 2012, http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/</a><div class="clear"></div>
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LATEST NEWS UPDATES | Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh </title>
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While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled..."/>
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While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled..." />
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<h1 class="cat-box-title">Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh</h1>
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Published on</span><span class="text-date"> Aug 23, 2012</span>
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<div style="text-align: justify">-The Indian Express</div><div style="text-align: justify"><br /></div><div style="text-align: justify">While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled by the Opposition at the time had raised the red flag when the Centre proposed the competitive bidding route in 2005.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The Centre had cited the lack of “transparency and objectivity” in the existing system of allocation while proposing the auction route. However, BJP-ruled Chhattisgarh and Rajasthan, BJP-BJD-ruled Orissa and Left-ruled West Bengal had opposed the Centre’s move in writing, raising a range of issues from federalism to adverse impact on iron/steel industrial undertakings and power projects.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In its report tabled in Parliament last week, CAG estimated a monumental loss to the exchequer because of the auction route not being followed on allocation of coal blocks.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">The stand taken by the states:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">RAJASTHAN</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PM dated April 11, 2005, then chief minister Vasundhara Raje said that while there were no known deposits of coal in the state, the proposed change in allotment of lignite “would not be appropriate” due to the following reasons:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It was against the spirit of the Sarkaria Commission’s recommendations;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) It would take away the state’s prerogative in selection of the lessee;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) Lignite was proposed to be used in the state primarily for power generation. Allocation of lignite through competitive bidding followed by negotiation with the state government as regards purchase of power and other terms would put the state in a position of disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The proposed process might result in lignite being mined by the successful bidder for use in locations outside the state.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">CHHATTISGARH</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter dated March 28, 2005, to the secretary, Union Ministry of Coal, the Chhattisgarh chief secretary raised the following issues to oppose competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) It will result in “substantial increase” in the cost of coal, an essential input, to iron/steel industrial undertakings which do not have access to captive coal blocks allotted on nomination basis;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) Iron/steel industries in inland locations, which don’t have access to coal blocks, would be rendered “non-competitive and thereby unviable”;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Chhattisgarh also suggested that the existing allotment process be made transparent and objective by bringing in financial and technical criteria.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">ORISSA</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the PMO on July 25, 2005, the Orissa commissioner-cum-secretary raised the following objections to competitive bidding:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) Existing investors in the mineral sector who are not allocated coal blocks would be at a serious disadvantage;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) States with rich mineral resources will be at a serious disadvantage as their authority to “recommend cases” for allocation of captive coal blocks on the basis of investment will not be available after the proposed amendment;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) States won’t be able to “leverage” their coal reserves to accelerate industrial development.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">WEST BENGAL</div><div style="text-align: justify"><br /></div><div style="text-align: justify">In a letter to the Union coal secretary on 31 March 2005, the West Bengal chief secretary opposed any change in the policy citing the following:</div><div style="text-align: justify"><br /></div><div style="text-align: justify">a) The present system takes care of both “subjective and objective aspects” of the projects for which coal block for captive mining is applied for, whereas the system of allocation through competitive bidding proposes to allocate coal blocks only on the basis of the highest price offered;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">b) The present system allows priority to power generation industries;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">c) In the present system, views of the state governments are considered. The proposed system may have an impact on states’ efforts towards industrial development;</div><div style="text-align: justify"><br /></div><div style="text-align: justify">d) The present system takes care of decentralisation of industries in states whereas the proposed system could lead to concentration of industries in a particular state.</div>
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<br><a href="http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/" class="re" target="_blank">The Indian Express, 23 August, 2012, http://www.indianexpress.com/news/auction-of-coal-blocks-will-hit-industry-oppn-said-in-2005/991902/</a><div class="clear"></div>
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LATEST NEWS UPDATES | Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh
Auction of coal blocks will hit industry, Oppn said in 2005 -DK Singh
Published on Aug 23, 2012
Modified on Aug 23, 2012
-The Indian Express
While the BJP disrupted the functioning of Parliament for the second consecutive day on Wednesday demanding Prime Minister Manmohan Singh’s resignation for alleged failure to go for auctioning of coal blocks, at least four states that were ruled by the Opposition at the time had raised the red flag when the Centre proposed the competitive bidding route in 2005.
The Centre had cited the lack of “transparency and objectivity” in the existing system of allocation while proposing the auction route. However, BJP-ruled Chhattisgarh and Rajasthan, BJP-BJD-ruled Orissa and Left-ruled West Bengal had opposed the Centre’s move in writing, raising a range of issues from federalism to adverse impact on iron/steel industrial undertakings and power projects.
In its report tabled in Parliament last week, CAG estimated a monumental loss to the exchequer because of the auction route not being followed on allocation of coal blocks.
The stand taken by the states:
RAJASTHAN
In a letter to the PM dated April 11, 2005, then chief minister Vasundhara Raje said that while there were no known deposits of coal in the state, the proposed change in allotment of lignite “would not be appropriate” due to the following reasons:
a) It was against the spirit of the Sarkaria Commission’s recommendations;
b) It would take away the state’s prerogative in selection of the lessee;
c) Lignite was proposed to be used in the state primarily for power generation. Allocation of lignite through competitive bidding followed by negotiation with the state government as regards purchase of power and other terms would put the state in a position of disadvantage;
d) The proposed process might result in lignite being mined by the successful bidder for use in locations outside the state.
CHHATTISGARH
In a letter dated March 28, 2005, to the secretary, Union Ministry of Coal, the Chhattisgarh chief secretary raised the following issues to oppose competitive bidding:
a) It will result in “substantial increase” in the cost of coal, an essential input, to iron/steel industrial undertakings which do not have access to captive coal blocks allotted on nomination basis;
b) Iron/steel industries in inland locations, which don’t have access to coal blocks, would be rendered “non-competitive and thereby unviable”;
Chhattisgarh also suggested that the existing allotment process be made transparent and objective by bringing in financial and technical criteria.
ORISSA
In a letter to the PMO on July 25, 2005, the Orissa commissioner-cum-secretary raised the following objections to competitive bidding:
a) Existing investors in the mineral sector who are not allocated coal blocks would be at a serious disadvantage;
b) States with rich mineral resources will be at a serious disadvantage as their authority to “recommend cases” for allocation of captive coal blocks on the basis of investment will not be available after the proposed amendment;
c) States won’t be able to “leverage” their coal reserves to accelerate industrial development.
WEST BENGAL
In a letter to the Union coal secretary on 31 March 2005, the West Bengal chief secretary opposed any change in the policy citing the following:
a) The present system takes care of both “subjective and objective aspects” of the projects for which coal block for captive mining is applied for, whereas the system of allocation through competitive bidding proposes to allocate coal blocks only on the basis of the highest price offered;
b) The present system allows priority to power generation industries;
c) In the present system, views of the state governments are considered. The proposed system may have an impact on states’ efforts towards industrial development;
d) The present system takes care of decentralisation of industries in states whereas the proposed system could lead to concentration of industries in a particular state.
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