CBI to probe captive coal block allotments since '93

If inquiry hints at allocation blunders during NDA regime, it will provide govt with ammunition to counter criticism by Oppn

In a new twist in the investigation of the alleged coal scam, the Central Bureau of Investigation (CBI) will start an inquiry into the allotment of 195 coal blocks to captive miners, including state government entities. The inquiry will cover allocations since 1993.

The ongoing CBI inquiry covers 67 blocks allotted to private parties since 2004 when the ruling United Progressive Alliance (UPA) came to power. If the inquiry raises questions over allocations during the National Democratic Alliance (NDA) regime, it will provide the government with political ammunition to counter criticism by the Opposition. The NDA government was in power from 1999 to 2004.

 

The CBI will conduct the fresh inquiry based on a reference by the Central Vigilance Commission (CVC). The reference came in response to a September 19 letter by Coal Minister Sriprakash Jaiswal requesting the commission to take up the concerns of a group of seven UPA MPs on the probe. The MPs, including Sandip Dikshit, Harish Chaudhary, Ravneet Singh and Raghuveer Singh Meena, in a September 5 letter to the minister had asked for a CBI probe into allocations since 1993, citing the latest CAG report on block allocation.

The CAG had noted there was no system in place for transparent and accountable allocation. “It appears that there were many cases of malpractice while allocating blocks between 1993 and 2004. All blocks allotted since 1993 should be investigated by the CBI, specially looking at systems through which state governments selected private companies whose names they forwarded to the government,” the MPs wrote in the letter.

The fresh investigation, with its widened scope, is likely to focus on three aspects. One, the systems adopted to ensure transparency and the criteria and selection guidelines adopted by states while recommending parties. Two, the systems put in place by the Centre for selection of companies for allocation between 1993 and 2004. Three, how joint venture partners were selected for allocations involving private companies and state governments.

The Opposition BJP welcomed the widening of the inquiry. “The story starts from 2004 but if somebody wants to go back to the 17th century, we have no objection,” BJP spokesperson Prakash Javadekar said.

The government has allotted a total of 218 blocks to companies since 1993. Of these, 195 blocks stood allocated to 289 companies by December 2011. The government had cancelled seven blocks based on the recommendations of an inter-ministerial group earlier this month owing to delays in their progress.