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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Agencies
June 7,2020

New Delhi, Jun 7: A day after India and China military commanders held "cordial and positive" talks at Chushul-Moldo point along the Line of Actual Control in Eastern Ladakh, Ministry of External Affairs said the two countries have agreed to "peacefully" resolve the situation in the border areas by continuing the military and diplomatic engagements.

The Indian delegation led by 14 Corps Commander Lt Gen Harinder Singh on Saturday met his Chinese equivalent Maj Gen Liu Lin, who is the commander of South Xinjiang Military Region of the Chinese People's Liberation Army, to address the ongoing tussle in Eastern Ladakh.

In a statement on Sunday, the MEA said that the meeting between the Corps Commander based in Leh and the Chinese Commander took place in a "cordial and positive atmosphere".

"Both sides agreed to peacefully resolve the situation in the border areas in accordance with various bilateral agreements and keeping in view the agreement between the leaders that peace and tranquillity in the India-China border regions is essential for the overall development of bilateral relations," the statement read.

They also noted that this year marked the 70th anniversary of the establishment of diplomatic relations between the two countries and agreed that an early resolution would contribute to the further development of the relationship.

"Accordingly, the two sides will continue the military and diplomatic engagements to resolve the situation and to ensure peace and tranquillity in the border areas," it further read.

China has moved its troops along the Line of Actual Control (LAC) in the Eastern Ladakh areas including the Finger area, Pangong Tso Lake, and Galwan Nala area.

The meeting between military commanders was to discuss and resolve the stand-off in Eastern Ladakh.

Following the meeting, the Army Headquarters' Directorate General of Military Operations also briefed the Ministry of External Affairs and other concerned government officials about the discussions.

On Friday, officials of India and China interacted through video-conferencing with the two sides agreeing that they should handle "their differences through peaceful discussion" while respecting each other's sensitivities and concerns and not allowing them to become disputes in accordance with the guidance provided by the leadership.

In the last few days, there has not been any major movement of the PLA troops at the multiple sites where it has stationed itself along the LAC opposite Indian forces.

The Chinese Army's intent to carry out deeper incursions was checked by the Indian security forces by quick deployment.

The Chinese have also brought in heavy vehicles with artillery guns and infantry combat vehicles in their rear positions close to the Indian territory.

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News Network
March 12,2020

New Delhi, Mar 12: The coronavirus pandemic could deal a crippling blow to the Indian travel and tourism industry, specially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. According to industry chamber CII, this is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments - inbound, outbound and domestic, almost all tourism verticals - leisure , adventure, heritage, MICE, cruise, corporate and niche segments.

The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurants, family entertainment venues and air, land and sea transportation have been hit.

In an impact assessment of the coronavirus pandemic, CII Tourism Committee said inbound foreign tourism of over USD 28 billion in value terms accounts for an average 60-65 per cent between October to March.

"As the news of the virus started picking up from November, the percentage of cancellations started going up in this segment exponentially and is reaching a peak of almost 80 per cent now in March in many Indian locations. The value at risk from this segment will be in multiples of tens of thousands of crores," the CII assessment report said.

With India cancelling all visas, the chamber said the impact "will be worse".

It further said,"The forward bookings for the inbound season of October 2020-March 2021 which should have started picking are all muted. These are showing highly discouraging signs with cancellations of important global travel marts which are marketplaces for contracting for the next season."

It further said there are reports of large scale forward cancellations from NRI segment from developed markets, which account for over 60 per cent during April to September inbound visits.

"Unless the progression of the virus stops, almost the entire value for the remainder of 2020 season is at risk," the report added.

ANAROCK Property Consultants Chairman Anuj Puri said India's hospitality sector will definitely be impacted by the announcement of a global pandemic, and the mounting numbers of confirmed coronavirus cases in the country.

"The cancellation of visas for foreigners as well as the strong advice issued to Indians to refrain from unnecessary travel will have a marked effect. This is the most unsettling healthcare crisis in recent times and hotel bookings will go south," he added.

On Indians being advised to refrain from unnecessary travel, as per the CII report almost 28 million plus Indians are estimated to have travelled outside in 2019 and there were almost 1.8 billion domestic tourist footfalls.

The holiday season of Indians -- those travelling within the country and outside -- is heavy in April-July, October and December.

"The December holiday season of 2019 took an estimated hit of almost 40-50 per cent, the holiday season of April to July 2020 is likely to take a humongous hit which could be as high as 80-100 per cent, unless there is positive news of the progression of virus decreasing," the CII assessment report said.

There are advanced cancellations and highly reduced forward booking pipelines for the holiday season. Only corporates are flying and that too only on highly essential same day travel. Most of the MNCs are advising work from home, stifling travel, it added.

On suspension of visas, MakeMyTrip Group CEO Rajesh Magow told ,"The period between February till the end of March is typically a lean period because of exam season but we are seeing a demand slowdown for the upcoming summer holiday season especially for international travel. The situation remains dynamic making it hard to quantify the actual impact on our business and industry at large."

He further said,"The decision by the government will have an impact on inbound and outbound international travel. So far there are no restrictions or advisories issued for domestic travel."

VFS Global Regional Group COO - South Asia, Middle East and North Africa, Americas Vinay Malhotra said,"While it is too early to comment on the impact of coronavirus on visa application trends, so far, our visa application processes in India continue on schedule as per the mandates of our client governments."

He also said the company is exploring steps to assuage concerns of people about visiting busy public areas due to the nature of the virus by considering discounted rates on courier return services for visa customers who want to avoid returning to the visa centres to pick up their passports.

Besides, he said,"We are also contemplating lower fees for our Visa at your doorstep service, for those customers who are requesting an alternative to visiting the centres to submit visa applications."

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News Network
February 1,2020

New Delhi, Feb 1: India on Friday banned the export of personal protection equipment such as masks and clothing amid a global coronavirus outbreak.

It did not give a reason for the ban but it reported its first case of the new coronavirus on Thursday, a woman in Kerala who was a student of Wuhan University in China.

The central Chinese city of Wuhan is the epicentre of the outbreak, and the virus has since spread to more than 9,800 people globally and killed 213 people in China.

Several Indian citizens living in Wuhan will arrive in India by plane on Saturday and be taken to a quarantine centre on the outskirts of the capital New Delhi.

India, the world’s second most heavily populated country after China, has taken measures to ensure that all people arriving from China report to health authorities.

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