It has
been uttered, noted, depicted and even analyzed that the domestic economy is
really dented by the recession and its negative effects are now palpable across
the industries. The results are: Flat corporate earnings, weak top and bottom
line, plummet in exports and expanding twin deficits. In short a hard recession
hit financials are really worrisome. But still in this tough financial
environment where nothing seems to be soaring up except the Inflation, there is
one financial value which is growing at an abnormal speed.
From some few
thousands of crore of rupees to lakhs of crore of rupees (and its recession
proof too) that is the financial value of scams in our country. From 2G to
Coalgate - Indian National Rupee amounting to – 1860000000000 (don’t get
astonished by the zeros added to the figure because that is the reality) is
what our exchequer lost because of the Coal allocation scam which was unearthed
by the CAG report a fortnight back. We as the citizens are now so much used to
these gargantuan monetary figures that indifference has seeped deep within us.
But one
peculiar thing which was highlighted by the CAG is that the Coal mining scam is
even bigger and shoddier than the infamous 2G scam, where at least some of the
benefits were passed on to the final consumers in the form of increased
competition and lower call charges. But that was not the case with unused coal
blocks, which did not increase availability of coal, or lower the price of
power or steel.
The CAG
report narrates how the government favored and benefitted private players
through its policies. The report says that coal fields in the period 2004-2009
were allocated to private entities instead of being auctioned. The Prime
Minister’s Office has also been bought under scrutiny as it delayed introducing
the process of competitive bidding, though cleared by the Law and Justice
Ministry. The report also states that mining was undertaken only in 28 out of
the 86 captive coal blocks that were scheduled to take up production, and they
failed to produce even half of what was targeted from those blocks.
There
are many questions which comes to my mind after reading about the issue – Why
was the competitive bidding policy was wrapped in obscurity? Why did the end
users’ benefits were not considered while allocating captive blocks? And even
if nepotism was at peak during allocation, still there was no fundamental
change in the authentic usage of blocks, why? When the democratic process is
brutally murdered it endangers the sovereignty of the state and this is what is
happening today and not only the sovereignty is at risk but the Mother Nature’s
appalling misuse is also a major concern.
Lastly,
in order to restore the democratic fundamentals of the states these blocks and
captive mines should be re-allocated only through the process of transparent
competitive bidding. Or simply it should be handed over to Coal India. The
government has been pushed to the limits, having even considered a vote of
confidence, as the Opposition stalls the proceedings of Parliament. The mood of
the nation inclines towards a mid-term poll, and the ruling coalition is well
aware of this fact. Many key UPA allies can be seen actively preparing for
mid-term polls and may even be ready to ditch the Congress and form a Third Front
should the NDA fail to produce substantial numbers in the polls.
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