Stating that mass cancellation of coal blocks will adversely hit the business sentiment, Confederation of Indian Industry (CII) President Adi Godrej, on Wednesday, said the government should take strong action against those who had acquired coal blocks by misrepresenting facts.
Mr. Godrej said that several reasons contributed to the failure of certain companies to start work on the coal blocks and listed reasons such as delay in environment clearances and problems related to land acquisition and law and order. “The law should take its own course and no precipitate action should be taken. The coal blocks, which were allocated as per due process, should not be cancelled. Any such cancellation will adversely impact business sentiment,” Mr. Godrej told reporters here.
However, the CII President said that any coal block allocation where it was established that due process had not been followed should be reviewed and appropriate action taken in accordance with law. He said that before taking any action, the government should keep in mind the fact that almost 40 per cent of the revenue from coal mining went to it as taxes and royalties. “There are several issues which lead to delays in the start of production in coal blocks. These are related to environment clearances and security issues and lack of supporting infrastructure, especially in the case of blocks in remote areas,” he said. Mr. Godrej asked the government to address these gaps in a time-bound manner and also through single-window mechanism. He stressed the need for taking urgent steps in areas such as taxation and foreign direct investment (FDI). “For various reasons, decision-taking process in the government is slow. If we do not take the reform programme agenda forward, we might get into further difficulties in terms of rating agencies, perception and investors shying away,” he said.
Keywords: Coal scam, coal block allocation, CAG report, UPA government, coalgate, Coal India Ltd
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all blocks must be cancelled as per law as they not started
work in given time
Where was this CII when corrupt regime was siphoning away wealth of Nation? Like 2G, why not cancel all coal block allocations and commence afresh with a clean slate. CII too should own the responsibility for the mess in the country as most of the CII fraternity indulge in corrupt practices for quid-pro-quo. Somewhere I saw in papers that CII made comments on CAG too!! In order to to have a fresh start, it is acceptable, if it means discomfort to few CII fraternity. Nation should come first. Honor the Nation, not corrupt.
Corruption cannot be defended in name of maintaining sentiment. Let the economy collapse or go back to pre 1991 if that helps in wiping out corruption. Because any growth parallel with corruption will imply unequal distribution of wealth & increasing rich-poor gap. It will be cancerous growth at best. If you have cancer in your left hand & doctor advises to surgically chop it off will you consider your sentiment for your left hand & let cancer spread??? If destruction is necessary before new construction then let it be. That's why Shiva (the destroyer) exists parallely with Brahma (the creator).
Ideally the licenses whould be cancelled as they were awareded based on bidding or other rightful way.
However it affects the sentiments of business community. The government need to amend the wrong-doing it has done. Negative sentiment should not be make an excuse to promote or carry on with the mistakes done in the past.
Here is a sane voice from the corporate world. Is the BJP listening?
Or it wants to destroy the progress made by the country by maintaining a ostrich like attitude calling for the head of our Prime Minister in the same manner as Shylock insisting on his pound of flesh in Shakespeare's play The Merchant of Venice. Some one is required to tell the enlightened BJP to take the pound of flesh without blood being spilled! Coal mining and the the gestation period required besides the plethora of clearances required to make a start should not lost sight of. Let only those who have taken the coal blocks in a speculative mode with an eye to make a quick buck on appreciation should be taken to task and not the genuine investors.
CII President makes a very valid point. Arbitrary changes to allocations in midstream will surely discourage businesses. But good businesses prefer a level playing field. When coal blocks are allocated to some companies without giving an equal opportunity for all Indian companies, where is the due process? Were the problems with land availability, security, and access to the blocks unknown to the companies before they received the allotments? Would these companies enter into deals in foreign countries without investigating such issues? If there were auction of coal blocks, would other companies have been interested in bidding even if only 60% is available after taxes?
Dear Adi (I am not sure I can call you that, but admire your quote),
Can you, through CII and other bodies unite your voice of rejection with
convincing facts ? You need to also talk to opposition (meaning BJP,
which has a stake) & like. When can Chambers of Commerce of various
States etc. effectively & factually rebut such propaganda ? I think,
you have not been able to conceive and inject right kind of agenda. Or,
is it that as companies, you did something because you have a stake,
like Ambani's.
Whose sentiment Mr Godrej is talking about?? Definitely not that of foreign investors who have been looking for a clean government with easy to do business procedures. Only Indian corporates who want to get the allocations for a price and park them to be sold at a very high premium at a later date like what his predecessors like Birlas used to do in License-permit Raj. Even if the corruption based are cancelled, it won't affect the investment climate.
Mr Godrej, is the business sentiment of today is important or the preservation of norms and procedures when the national wealth is at stake? As an industrialist it is in your interest to have a Government and buereaucracy above corruption and nepotism. If to set right the mistakes of few, the nation suffers a bit, so be it; at least this will not be repeated so that your 'business sentiments' will not be disturbed in the future. The contribution of the business houses to 2G, Commonwealth Games and Coalgate scams is substantial both by omission and commission.
You should be reminded of the Sanskrit saying ' To save a family, one member can be sacrificied, to save a village a family can be sacrificed, to save a town a village can be sacrificed, to save a country a town can be sacrificed'.
In this case, to save the country few business houses, politicians and buereaucrats can be sacrificied.
So Mr Godrej, take it in the chin and don't complain.
The CII President must understand that it is the captains of Industry that contribute to bribes etc., and hence the CII President is not willing to let go because of the bribes that were given. The confidence of the people and those of the business people abroad look at the coal-gate and want something tangible to happen. Why not cancel the coal blocks that were given based on bribes?
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