PM admits he cleared coal block allocation to Hindalco

October 20, 2013

PM_HindalcoNew Delhi, Oct 20: The Prime Minister's Office on Saturday ended its silence on the latest and possibly most explosive development in Coalgate by acknowledging that Manmohan Singh put his stamp of approval (on October 1, 2005) on the allocation of a coal block to top industrialist Kumar Birla's Hindalco. At the same time, it vigorously rebutted the Central Bureau of Investigation's claim of illegality, saying the PM stood by the decision as no wrong had been committed.

Taking what is being seen in political and bureaucratic circles as an uncharacteristically strong stand, the PMO said, "The PM is satisfied that the final decision in this regard was entirely appropriate and based on merits of the case placed before him."

The PMO statement comes after retired coal secretary P C Parakh — booked along with Birla for alleged criminal conspiracy and misconduct, and corruption - said that if CBI thought there were irregularities, then the PM ought to be "accused No 1" for giving his approval.

With the opposition baying for his resignation, Singh's move to forthrightly own up to having sought a reassessment of Hindalco's case after a representation by Odisha chief minister Naveen Patnaik appears intended to cap a politically debilitating controversy.

But by doing so, Singh, who at the time held charge of the coal ministry, accepted he was the "competent authority" who signed off on the coal allocations in the 2006-09 period - under CBI's lens — when he held charge of the portfolio. On whether the PM would be ready to be questioned in any Coalgate case, as suggested by senior minister Kamal Nath, a PMO spokesperson declined comment, saying CBI was yet to make such a request.

The PMO said it didn't wish to impede the CBI's investigation, but justified altering the screening committee's earlier decision to award the coal block in question to public sector companies Neyveli Lignite Corp (NLC) and Mahanadi Coalfields Ltd (MCL) by relying heavily on Patnaik's backing to Hindalco.

In accommodating Hindalco as the third partner in a joint venture, PM also waived a violation in guidelines to enhance the firm's share by arguing that NLC and Mahanadi were "sister PSUs" and Neyveli's share could be made good from Mahanadi's 70% allocation.

It invoked the "federal framework" to say Patnaik's views had to be accommodated, and claimed that public sector claimants had not been disadvantaged.

Countering criticism that private sector Hindalco had been favoured, PMO said the coal requirements of the two PSUs, who also sought the blocks, were protected in a separate arrangement.

Neyveli Lignite was originally allotted Talabira II coal blocks in Sambhalpur by the screening committee headed by then coal secretary P C Parakh as the panel held that Hindalco had failed to utilize a previously allocated block. The committee also said Hindalco had been provided adequate coal linkages from MLC, which it had failed to utilize. It was felt NLC and Mahanadi could together develop Talabira II and III to extract an additional 30 million tonnes of coal.

The coal ministry altered the screening committee's decision and gave Hindalco a 15% stake in a joint venture with NLC and Mahanadi, said the PMO, after considering representations from Birla and Patnaik, which were referred to it by the PM.

PMO said while the original recommendation was being processed by it, the PM received a letter dated 17.8.2005 from the Odisha CM saying that the state government assigned "topmost priority" to allocating Talabira II to Hindalco. Singh noted "please get a report from the coal ministry" on the letter.

Birla in his letter also sought the linkage and officials said he explained that Hindalco had not been able to use its previous allocation as a bauxite lease for its aluminium plant had not materialized.

Coal ministry resubmitted the file on 16.9.2005 proposing that Talabira II and III be mined as a single entity by the JV. Mahanadi's holdings would be proportionate to the extractable reserves in Talabira III or 70% of annual production.

The coal ministry told the PM that the total requirement of coal from the blocks by the main contenders was 503 million tons. The ministry said the claim of Orissa Sponge Iron Ltd would be accommodated elsewhere and Mahanadi was made a partner along with Hindalco and NLC.

Neyveli could not be dropped as it was a central PSU backed by the screening committee. In its account, PMO has leaned on the Odisha CM's "clear preference" for Hindalco in the "interest of creating more employment and growth of the state's manufacturing sector."

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News Network
June 25,2020

New Delhi, Jun 25: Union Home Minister Amit Shah on Thursday hit out at Congress for "unceremoniously sacking" its spokesperson and said that leaders in the opposition party are "feeling suffocated".

To substantiate his point, Shah referred to the recent Congress Working Committee (CWC) meet in which senior members and younger members raised a few issues, however, they were "shut down".

Taking to Twitter, Shah posted two English dailies' articles titled -- "Not scared of PM Modi, but many in the party dodge him: Rahul at Congress Working Committee meet" and "Congress removes Sanjay Jha as party spokesperson after critical article".

Last week, Jha was dropped as AICC spokesperson and Abhishek Dutt and Sadhna Bharti appointed as National Media Panelist of Congress party.

"During the recent CWC meet, senior members and younger members raised a few issues. But, they were shouted down. A party spokesperson was unceremoniously sacked. The sad truth is - leaders are feeling suffocated in Congress," the Union Minister tweeted.

Meanwhile, Shah also targetted Congress on the completion of 45 years of emergency, which was imposed by former Prime Minister Indira Gandhi on June 25, 1975 and asked the party to self introspect.

"As one of India's opposition parties, Congress needs to ask itself: Why does the Emergency mindset remain? Why are leaders who do not belong to 1 dynasty unable to speak up? Why are leaders getting frustrated in Congress? Else, their disconnect with people will keep widening," he wrote.

Comments

Fairman
 - 
Thursday, 25 Jun 2020

Jha the spokesperson, tried to be under the payroll of BJP, so disciplinary action was imminent.

 

Discipline has no compromise.

Mohammed
 - 
Thursday, 25 Jun 2020

If i am not wrong you have already purchased suffocated leaders from congress.

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News Network
March 31,2020

Thiruvananthapuram, Mar 31: Kerala reported its second COVID-19 death after a 68-year-old man being treated for the virus, died at the Government Medical College Hospital here in the early hours on Tuesday.

The victim, Abdul Aziz, a retired ASI hailing from Pothencode here, was admitted to the isolation ward on March 23 with the symptoms of the Corona infection. He was also suffering from lung and kidney diseases.

Though his first test result for COVID-19 turned negative, the second test result confirmed positive, official sources said.

However, it was not known from where he caught the virus infection. leaving chances for a secondary contract of a COVID-19 patient.

His funeral will take place as per the protocol, the sources added.

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Agencies
July 18,2020

New Delhi, Jul 18: National carrier Air India on Friday said that it is in a ‘very challenging financial’ situation and is taking recourse to several initiatives, with a view to ensuring the continuance of its operations.

The airline, in a statement, noted that it has introduced the partially voluntary 'Leave Without Pay' (LWP) scheme on July 14.

"The scheme primarily enables employees to avail the benefits of proceeding on leave without pay on a voluntary basis. The LWP scheme has been introduced for grant of leave without pay and allowances for permanent employees for a period of six months or two years, which is extendable upto 5 years," the statement said.

"Air India had brought out similar scheme earlier... Several hundred employees have, in the past, availed of the LWP Scheme."

As per the statement, in the wake of the ongoing Covid-19 pandemic, there may be employees who are unable to attend their office duties in person on account of personal reasons.

"The LWP scheme enables employees to take a break from their office responsibility for a defined period of time with the approval of the management, while retaining their employment with the company," the statement said.

"They will continue to avail facilities such as passage, medical and housing at specified rates."

Accordingly, the LWP scheme provides the opportunity to employees to take up alternative employment with the approval of the management during the period of the said leave, the airline said.

"The LWP scheme is a win-win situation for both the management as well as employees as it provides flexibility to employees and simultaneously reduces the wage bill for the company," the statement said.

"It is important to note here that the Covid-19 outbreak has very seriously impacted the airline sector and currently, the airline operations of the company are a small fraction of the prior Covid level operations."

The airline said that employees are encouraged to apply for availing the benefit of the scheme, in the prescribed format, by August 15.

"The only addition in this scheme as compared to the earlier LWP scheme is that the management can pass an order requiring the employees to go on leave for a period of six months or two years (extendable upto 5 years) compulsorily taking into consideration 'Suitability, Efficiency, Competence, Quality of performance, Health, Non-availability of employee and Redundancy'," the statement said.

Furthermore, the airline said that this provision has been introduced for use, "very sparingly", with a view to ensuring that the overall efficiency of the organisation, improves and the management will ensure that this will be implemented with complete fairness and transparency as per prescribed procedure.

Consequent to the announcement of the scheme, Air India unions are discussing their strategy against the move which might involve legal recourse.

An Air India union leader on Friday told IANS: "This is going to affect the livelihood of many. Why not every employee of AI take LWP a few days every month. This way the burden can be shared."

"The motive of the top management is to save their money by snatching money from lower employees."

According to Air India PIM document, as on November 1, 2019, the airline, on a standalone basis (without subsidiaries), had around 14,000 employees, including fixed term contract staff.

The development comes as the Centre has re-initiated the airline's divestment plan with new norms.

Interestingly, this time, it has sweetened the deal by substantially reducing the debt on the airline's account books and offered a 100 per cent stake in the loss-making airline.

The last date for bid submission to acquire Air India has also been extended to August 31.

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