Coal block auction in Odisha; whether transparency can be maintained in the process?

The coal ministry is devising a single-window clearance mechanism for faster online application processing for various approvals, including environmental clearance, required for operationalisation of coal blocks. As Odisha is the country's one of the hubs of coal mining the major question arising whether the transparent process will be maintained or not.

Bhubaneswar: In order to attract bidders in the auction of commercial mines, the Centre recently announced the launch of a project monitoring unit to facilitate early operationalisation of coal blocks. But in the case of Odisha, the question arises whether the transparency will be maintained in the auctioning of the coal blocks or not.

The government has put on 41 coal mines for commercial mining. The blocks are distributed across coal-bearing states: Chhattisgarh (9 mines), Odisha (9 mines), Jharkhand (9 mines), Madhya Pradesh (11 mines) and Maharashtra (3 mines). This includes nine coal blocks in Odisha. They are Chhendipada-1, Chhendipada-2, Machhakata, Mahanadi, Radhikapur East, Radhikapur West, Brahmanbil, Karada Bahal, Kuraloi - A North, Phuljhari East and West.

For the first time in Odisha, the coal block had been allocated in 1998 and the allegation of irregularity came to light in the year 1999. The allegations of irregularity were specifically made against, Talabira coal block.

Following the allegations, the state government was dragged to the Court and the CBI had been entrusted with the enquiry into the irregularity. Finally, the allegation of irregularity was proved and the allocation of the coal block was cancelled.

The enquiry into the allegation of irregularity continued till 2004. While the then UPA government pointed an accusing finger towards Odisha Chief Minister Naveen Patnaik, the state government put the entire blame on the Centre.

The Central government argued before the Court that since the Chief Minister had himself recommended the case of this particular Company in writing, the Union Government had made the allocation.

At that time, this subject was a hot topic of debate everywhere. The Supreme Court had cancelled the allocation in the year 2014. Finally, the allocations of all the coal blocks made between 1993 and 2010 were cancelled by the Government.

The Comptroller and Auditor General (CAG) had also raised objection on this matter as the allocations were made whimsically without taking recourse to auction route.

Speaking to ETV Bharat, the former state finance minister, Panchanan Kanungo said, "Odisha has been visualised in a different role in mining cases. The State is losing crores of rupees for this issue. It would be known at a later stage whether the transparency has been maintained or not. If the government wants, it can indirectly find a way to show favour to a particular Company. Why the Central government is not taking a decision on revision of royalty on coal for the last four years."

"However, the state government has totally washed off its hands in this matter and thrown the ball to the Centre’s Court. I have raised the issue that people should know all about the auction process but the state government has never taken this issue seriously. It is totally peoples' right and they should be part of this process. This new auction process has to be open for the people who really deserve this. The government move aims to promote ease of doing business in India as it will facilitate coal mines allocatees to obtain timely approvals for operationalising the mines," he said.

Prafulla Mallick, state's minister for steel and mines said, "The auctioning would be done by the Centre. We have only recommended the names of nine coal blocks. Coal happens to be a central subject. Transparency would be maintained in the auction process. We are waiting as to when the Union Government would take the final decision in the matter."

The General Secretary of the Eastern Region Mine Owners Association, Prabodh Mohanty said, "The auctioning of coal block is a win-win situation both for the government as well as the Companies. Transparency will be maintained in this respect. It would be done in the same manner as had been done in the recent auction of mines by the state government. There is no cause to cast any doubt in this matter."

Reportedly, Coal Minister Pralhad Joshi had earlier said the auction process of commercial coal mining witnessed a "very good start" and the response has been the best in domestic coal history. At least there will be a platform where the approvals would be available, people can log in and give their go-ahead.