"Charges of impropriety are unsupported by facts"
Prime Minister Manmohan Singh on Monday attacked the Comptroller and Auditor-General’s report on the coal blocks allocation during 2004-09, saying any allegation of impropriety was without basis and unsupported by facts.
As Parliament has been paralysed during the past week with an unrelenting and combative Bharatiya Janata Party disrupting proceedings in both Houses and demanding his resignation, Dr. Singh chose to make a statement in Parliament, but was shouted down by BJP members.
He had barely begun reading his 32-point statement when it was drowned in the din and he had to lay it on the table.
Taking full responsibility — as the Minister in charge then — for the Coal Ministry’s decisions during the time covered in the report, Dr. Singh said the CAG’s observation that there was a financial gain of about Rs. 1.86 lakh crore to private parties was “clearly disputable.”
He sought to take the battle into the Opposition camp and blamed the Opposition-ruled States for resisting the proposed change to competitive bidding. Dr. Singh said major coal- and lignite-bearing States such as West Bengal, Chhattisgarh, Jharkhand, Orissa and Rajasthan, ruled by the Opposition parties, were strongly opposed to the switchover.
These States felt that competitive bidding would increase the cost of coal, adversely impact value-addition and development of industries and dilute their prerogative in the selection of lessees.
Dr. Singh pointed out that the Coal Mines Nationalisation (Amendment) Bill, 2000, aimed at facilitating commercial mining by private companies, had been pending in Parliament for long, owing to stiff opposition from the stakeholders. He termed “flawed” the CAG premise that competitive bidding could have been introduced in 2006 by amending the existing administrative instructions.
The CAG’s observation, he said, was based on a “selective reading of the opinions given by the Department of Legal Affairs.”
Dealing with the CAG’s key observations point by point, Dr. Singh said that even if the government auditor’s contention that benefits accrued to private companies was accepted, “their computations can be questioned on a number of technical points.”
He said the policy of coal blocks allocation to private parties was not a new one introduced by his government. It had existed since 1993 and previous governments also allocated coal blocks in the same manner.
The private parties allocated captive coal blocks could not achieve their production targets partly because of cumbersome processes involved in getting statutory clearances, he said.
The government had initiated action to cancel the allocations of those who did not take adequate follow-up action to begin production. “Moreover, the CBI is... investigating the allegations of malpractices, on the basis of which due action will be taken against wrongdoers, if any.”
(With inputs from Sujay Mehdudia)
Keywords: Coal scam, coal block allocation, CAG report, UPA government, coalgate
funny! someone here commenting on BJP stalling the functioning of
parliament while the congress government is indulging in multi scams
each accounting to several lakh crores of rupees. funny! how people
like these support this misrule to go on and on! All the important
bills are kept hanging by this govt. and only irrelevant or those
which could add more to their kitty are passed. Do not support
corruption or corrupted when the nation has already lost several,
several lakhs of crores of money due to this crippled government at
the centre.
In a parliamentary democracy CAG's report is not the final word.
Even CAG's calculations are not based on a sound footing.It is based on some averages and assumptions,which may not be true for the coal blocks under question located in different terrains.Only a threadbare analysis in the PAC and debate in parliament will bring out the truth.It is unfortunate that the main opposition is in no mood to allow this to happen.
both opposition and ruling parties are just making the public fools and enjoying the political show. Both parties, rather all parties are just enjoying and making the public life miserable day by day. Either good people will not come to politics or these politicians will never allow good people to enter into politics.
Julian Assange on Manmohan Singh 12/04/2011 reported by ‘The Hindu’ "has a habit of reactively covering up allegations of corruption.” See how true Mr Assange's words are.
Old methodology we followed was spelt out by Raja in 2G
Zero Loss was spelt out by Kabil Sibal in matters of 2G
Auction will increase the cost of mobile usage cost was said by Raja the same is repeated by PM when he says that power cost will increase. I dont see any difference between Raja and Manmohan Singh in matters of corruption.
So much of infighting within our country, its leaders and managers. About 450 years ago similar strife within had led us to get colonised. After 350 years of oppression and degradatation to poverty, sacrifices of millions of freedom fighters, the hard won freedom is again sacrificed for selfish interests at the hands of corrupt leadership. The education they recieved for life and living and which allowed them to ascend to power has been sans social responsibility. Whither India??? Or will the consience of our national leaders awaken and help engender a new beginning for our millions where every living being is guaranteed true dignity of existence, rights, freedom, justice and compassion. If this happens millions will be driven by a sense of social responsibility for the wellbeing of all, and India will emerge as the truly developed country in the world.
Congress has totally lost touch with Indian public.
For last several months public is disturbed over revelations of scams after scams.
Open discussions in business circles about the bribes demanded even by Chief
Ministers for business permissions as well as first hand experience of Public in
dealing with Government departments confirms we have a very corrupt Government.
For long, we eagerly awaited responses from our leaders -The P.M. and Sonia- to
convince us that they are making honest efforts to check corruption.
But, Alas! they maintained silence. They fielded Kapil,Renuka Narainswamy, Rajiv
Shukla,Jaiswal,Beni,Diggi etc.to defend. These minions have further damaged the
Government's credibility and raised doubts on its honesty and competence.
Today, when Manmohan is in trouble he wants to speak. We now are in no mood to
listen to him.
His image has changed from a Hero of 1991 to a joker of 2012.
Great Congress party of Gandhi,Nehru is in its last lap.
Corporate governance does involve important audit observations post any major expenditure which is discussed by the management before conclusions are drawn for future guidance. Our parliamentarians sitting in the opposition benches seem to be bent upon crying foul on the observations of the CAG. The Prime Minister is well within his rights in answering on the floor of the house. The whole issue seems to be deliberately misunderstood with an eye on the hustings playing to the gallery. Investment was required for exploiting the natural resources available in the country to avoid dependence on imports draining out valuable foreign exchange. Executive decisions should be understood in the context of the status at the time of the decision and not taken out of context. The CAG as well as the opposition are fallacious in associating pecuniary gains with major policy decisions. The general public in our country would get carried away with the opposition waiting to cash on vote banks.
Saying that the government policy was wrong is one thing. This is a
matter of opinion. Saying that the government *deliberately* undersold
the coal mines for a hefty kickback, amounting to a criminal offense -
this requires hard evidence, which I have not seen from BJP. Policy
errors can be debated and exposed as such - and maybe the people will
vote against the Congress if they believe that errors were made. But
demanding the PM's resignation and holding up the parliament with no
evidence of criminal misconduct is unacceptable.
Respected PM resign from your post and allow the parliament to function.Give a chance to opposition that you are clean after court verdict.Kapil said that there is no loss in 2G and now chidambarm claimed that there is no loss in coalgate. I think you are unaware of both of these loss. if you are clinging to power people will think that you are culprit. Do just like karnataka chief minister and show you also clean by resigning from post.
What else PM's reply could have been?
He knows that he has done mistake, the only thing which can save him to challenge the report. This is what they have been doing from quite some time, be it 2G (Zero loss theory)/CWG/IGI Airport...everywhere they are blaming CAG.
Apparently Prime Minister is insinuating that CAG, rather the Institution of CAG in itself is flawed and report is full of improprieties. Great! This calls for winding up CAG and all such like institutions. It will save lot of Embarrassment to the government & money as well for misappropriation.
It is a ridiculous behavior on the part of those who are criticizing the CAG’s report, even going further to create confusions on the credibility of this Constitutional institution. Instead of going through the report thoroughly and accepting the negative points, from day 1, govt has started criticizing the CAG and again signing the zero loss theory.
Everyone knows auctioning is the way forward, even govt was planning the same, question now is whay the delay of almost 6 to 7 yrs to implement the same.
What happened in the light of the top court’s judgment over 2G issue is well known, base price for the auction has now been increased and even crosses the total loss figure highlighted by CAG earlier. It is foolish on the part of those who are singing the same theory now.
It is day light robbery from those private companies, who doesn’t had ABC of the Coal extraction/power generation at the time and got the blocks allocated.
For the love of God, how can he justify these allocation to private company for creating cheap electricity. He talked in the same vein about 2G spectrum loss and what happened next is history.My basic question remains that does he seem to understand that fooling everyone every time is just not possible. The "Ceasers wife" has been and remains to this day the main accomplice in all the scams undertaken by UPA-2.Manmohan Singh has become the greatest example of UNDOING oneself and an irrevocable damage to his credibility. Jai Hind
The PM made 32 points on the issue in his statement. Any attempt to pick and choose could make the report go out of context or non factual. Being a matter of extreme importance and sensitivity I would request the Hindu to give PMs statement along with a revised elaborate report covering most of the points.
Government has to do its job. CAG has also to do its job. Main opposition has also to do
it's job. All of them have done their jobs well with BJP alone as an exception. The main
Opposition seems to be overdoing its job. The opposition leaders are going hammer and
tongs at ensuring that the government falls. This is ridiculous in the facts and
circumstances. As they have been repeatedly failing in their attempts to bring down the
government ever since it was formed in 2019 even after the people threw out the
proposition of Mr. Advani that Mr. Manmohan Singh is the weakest PM that the country
ever had, BJP is not able to digest the people's verdict. Before people get fed up with
BJP's functioning as the main opposition, let BJP mend it's ways.
It would be useful if PMs actual statement is published. Going by the above report one gets to have the view that the PM is not questioning CAG in principle and the issue is only on the logistics.
At this stage we believe the CAG report is correct. Better PM should resign from the politics, it will be good if he himself surrenders,and please dont blame the CAG or any other authority. People have lost faith in your corrupt Govt.
If PM does not respect CAG, who will respect you? CAG, PM, President,
Election Commission, Judges are constitutional offices. If you
disregard CAG you are making a precedence that Indian Constitution is
irrelevant. You can easily say that the decisions of Election
Commissions, Judges, President etc are disputable. India's democracy
is going on because we respect Indian Constitution. Let us not
belittle Indian Constitution.
When congress expects not to demean the PM, everyone including the PM
has no business to demean the constitutional body, CAG. The comment made
by the PM on CAG is derisive. He knows the implications. Instead of
resigning, why he is wasting his time arguing on things which will not
hold waters in any account?
In a parliamentary democracy outstanding issues must be sorted out through debate and discussions .BJP must not stall the proceedings of the House and let the PM make a statement .If any irregularities found we will vehementaly pitch the demand for his resignation.
It is baffling why the government of the day has become accustomed to first creating needs
to justify after a few years every bit of its actions in the allocation of valuable natural
resources that shouldm actually go to benefit all sections of our people for the much hyped ' inclusive' growth with equity and social justice in fulllay ? What we see in the UPA dispensation is the exclusive growth of those who have the reach? This is, to put it mildly, a shocking betrayal of the voters, and the earlier the Government goes, it is good for India and its international image.
On 2G, did GAG analyze the impact of the consumer mobile rates had the 2G spectrum was auctioned.
Let the PM resign and order CBI probe and place the disputable aspects of CAG's observations in the court. PAC is neither a Court nor it is a body which would mete out punishment. Like opposition parties hecle the ruling party in Parliament, the ruling party will hecle the opposition in PAC. Ceaser's wife should be beyond doubt and PM should resign and face charges in court. If PM's integrity should not be questioned so be the CAG's who is also Constitutionally appointed. CAG does not have coalition compulsions and at least we can proudly call him the pillar of medicine which prevents /exposes/stabilises the other pillars whenever they get corroded or demolished. Dear PM, If Gold Rusts what can Iron do?
How in the world can you allot coal blocks to a gutkha company ,an underwear company!!!??? If you rationale is you wanted cheap power for this country ,where is the power ?With 200 years of reserves of coal we are importing expensive coal!! Were the credibility check on the companies alloted were taken into account ?If so where are the results?You achived nothing other than skyrocketing the values of petty companies to the stratosphere and pocketing billions overnite .
Parliament should function first. My request to opposition is raise this issue in the house and prove govt is wrong & CAG's calculation is correct. Then take damage control steps.
While one cannot say whether all coal blocks were allotted in a
transparent manner, the impression created by the CAG report that the
nation has suffered a loss of Rs. 1.86 lakh crore is wrong and without
basis. This figure represents the profit earned at the rate of Rs 295
per tonne on the extractable quantity of 6300 million tonnes contained
in 57 blocks allotted to the private sector over a period of 20-25
years. This is the same amount that Coal India (CIL) and other public
sector captive mines earn. So why is that the profit made by private
sector is a loss to the nation? On the other hand as coal is in short
supply and is being imported at a cost of Rs 3000 per tonne for
equivalent grade, production of that much quantity from captive mines
would result in a profit of Rs 18.6 lakhs crore i. e ten times the
profit the mines would be making. The CAG’s quantification of the
benefit to the allottees without considering the benefit to the nation
is highly misleading and creates chaos.
though a congressman, i differ individually from the stated position of
the congress party that this issue ought to be sorted out by debate.CAG
is a watchdog body created by a statute.
if a dog barks, it is embodied that there is something mischievous
around the household. it is the duty of the occupant of the house to
take remedial action.
When idea favours and advantageous to Congress ruling party where ever it comes from the Govt will accept this and implement them to their advantage.BJP should be ashamed of having black sheeps with them also.
PM can very well abolish the CAG.Auditing of Accounts, any agency which probes into the genuiness of transactions in the best interest of the party. Now the Congress,treat CAG and like scrutinising agencies an avoidable nuisance to run the party government.PM is not defending the Country,but protecting and defending the corrupt elements in the party and the government and in the opposition too.PM is answerable and accountable to commonman in the street and to the Nation.He should not cause loss to the wealth of the Country.
Dear PM and FM, in Australia (one of the world leading mining nation) the debate is not about roaylties or licenses any more because these are far too high already. The present deabte is about how much of the profit earned by the mining companies should be returned back into the government coffers. The present labour government advocates that the resources are owned by the people of the country and therefore people should be equally benified from the mining boom. A country with onetenth of Indias population is thinking so well ahead what's your plan!!!!!!!!!!!
So now we have a 'learned PM' who chooses to question the CAG, without
releasing any data on why the CAG figures are incorrect. PM, as an
economist you're surely aware that evidence is not in hand waving but
in showing the data, backed with proper analysis. By saying that
you've simply followed previous procedures is saying that your
government has not done due diligence in examining if previous
procedures are correct or not. Assuming what you're saying is true, by
following crooked procedures of the past, you're unwittingly guilty of
the same crime as previous governments. The problem in India is that
NOT one party is free from being corrupt with people having scant
respect for the most important institution of the country - the
Parliament. That is why the country is on the verge of a being a
banana republic. Thank you very much for your wonderful leadership.
Similarly another great Economist like Dr. Manmohan Singh is now
questioning Comptroller General's report which is created by several
CAs and Financial Masterminds. Let me explain to common people that
this loss estimate is more similar to approx. 5000 crore loss per
annum for the next several decades. It is similar to valuation of a
company which today is earning say only 200 Crore per annum but its
today's value (Net present value) would be approx 5000 Crore as the
company would be assumed to be surviving for 20+ years and 200 crore
would be coming every year (with revenue possibly increasing at the
rate of risk free rate of 6% minimum).
Dear PM , we would like to know the basis of selection of the allotees , to whom national wealth was gifted away at throw away prices . We are not concerned aboout auction or alotment process.
We all know Coal blcks were allotted to Companys' who had no connection with power or coal , no interest in any coal relate industry . PLEASE EXPLAIN THESE ALLOCATIONS also.
Nobody is waiting for hs statement we want Action now, what is gone is gone but how to recover from that is more important insted of wasting time on useless issues
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