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LATEST NEWS UPDATES | Government ready to take up bill to amend Coal Mine Nationalisation Act: Coal Minister Sri Prakash Jaiswal-Rohini Singh & Soma Banerjee

Government ready to take up bill to amend Coal Mine Nationalisation Act: Coal Minister Sri Prakash Jaiswal-Rohini Singh & Soma Banerjee

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published Published on Aug 22, 2012   modified Modified on Aug 22, 2012
-The Economic Times

The government is ready to give up its monopoly over coal mining to meet the requirements of the economy, if BJP supports a long-pending legislation to amend the Coal Mine Nationalisation Act (CMNA).

"We are ready to take up the bill and open up the coal sector to increase production. This is the only way forward and there is a consensus within the government on this. Once BJP comes on board, the trade unions will fall in line," Coal Minister Sri Prakash Jaiswal told ET in an exclusive interaction on Tuesday evening.

Jaiswal's statement came hours after both Houses of Parliament were adjourned over demands for the resignation of the prime minister on the grounds that he owned moral responsibility for the alleged corruption in allocation of captive coal mines as he was in charge of the coal ministry at the time.

CMNA, a legislation passed in 1973 when Indira Gandhi was PM, makes coal mining a state monopoly. However, private companies can mine coal for a specified end-use.

The NDA government had introduced a legislation to amend the coal mine Act way back in 2001, but was unable to pass it due to strong opposition from trade unions. A bill is still pending in the Rajya Sabha.

The coal minister clarified there would be no review of the allocation of three coal mines to Reliance Power for its Sasan ultra mega power project.

Manmohan to Blame Opposition

"The EGoM has decided to allow the company to use the surplus coal in the Chitrangi (Madhya Pradesh) coal project and that remains final," he said.

In its report released last Friday, the Comptroller and Auditor General (CAG) had sought review of the decision to allocate the Chhatrasal mine, the surplus output of which would go towards Reliance Power's Chitrangi power project.

Defending the prime minister's role, Jaiswal said there was no basis in asking for his resignation based on the CAG report. "I completely disagree with the findings and the calculation of losses, and the prime minister cannot he held responsible for errors, if any, at the lower level."

Every decision on allocation of captive coal blocks had the support of the state government in which the mine was located. Local governments are responsible for most of the permissions needed to operate mines, the minister said.

"Before asking for the prime minister's resignation, BJP should first seek the resignation of the chief ministers in Gujarat, Madhya Pradesh and Chhattisgarh against whom CAG has alleged large-scale corruption."

Jaiswal said steps had already been taken against companies that failed to keep their commitments, with the government de-allocating 25 blocks. "All such companies are blacklisted and they will have no role in the coal sector anymore," he said.

"The ministry has sent showcause notices to 58 more companies and bank guarantees are being encashed in some cases."

On the forthcoming auction of captive coal mines, the minister said the power sector would be protected from the impact of escalation in coal prices as a result of auctioning of mines. While all bidders would have to bid above a reserve price, in the case of the power sector, the reserve price would be frozen. All power projects would be based on a tariff bid, he said.

Speaking on the role of state governments, Jaiswal said state governments that opposed the move to auction coal blocks only came around after they were assured that all proceeds from bids would accrue to states. He, however, admitted that although auction was a step towards transparency, it would lead to escalation of costs for the steel, cement and power sectors.

On Tuesday, government officials also described the board contours of the UPA-led Congress government's strategy to counter an Opposition that has been invigorated by the three CAG reports released last Friday. 

Prime Minister Manmohan Singh will blame opposition from states ruled by BJP for the delay in auctioning coal mines to counter strident demands for his resignation, officials said.

He is likely to intervene and make a statement on the floor of the House when it convenes next, detailing reasons for the delay in introducing the auctions. Congress has brushed off demands for Singh's resignation.

Congress MPs and government ministers have said the government is willing to debate the allocation controversy in Parliament. Singh said earlier in the day that he was willing to discuss the matter "on the floor of the House".

Senior cabinet ministers, including the law, telecom and parliamentary affairs ministers spoke outside Parliament defending the government's position.

CBI is also probing all the allocations and the credentials of companies that have defaulted on work commitments, ET had reported in its 20 August edition. "There is strong evidence of private mining companies that have changed hands or have defaulted on their commitments and action will be taken soon," a CBI official had said. 

The Economic Times, 22 August, 2012, http://economictimes.indiatimes.com/news/economy/policy/government-ready-to-take-up-bill-to-amend-coal-mine-nationalisation-act-coal-minister-sri-prakash-jaiswal/a


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