- Joined
- Dec 23, 2011
- Messages
- 495
- Likes
- 275
Yes. I think the money is peanuts compared to actual value of coal.
Govt lost Rs 10.7 lakh crore by not auctioning coal blocks: CAG
- Thread starter thakur_ritesh
- Start date
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
Any data to prove that?
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
Why don't you point out where there was no transparency?No mate but does it mean there should be no transparency?
- Joined
- Dec 23, 2011
- Messages
- 495
- Likes
- 275
Loss of 215 billion $ and you want data .
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
That is what CAG says based on its assumption of auction. I say te whole auction thing is flawed as it will hack up prices.
Corruption is if under present laws, was there favoritism or allocation at a lesser price.
Blackwater
Senior Member
- Joined
- Jan 9, 2012
- Messages
- 21,156
- Likes
- 12,211
what u can expect when this dari wala gunda was coal minister
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
General Conditions of Allocation
i)
The allocation is made to meet the coal requirement of the permitted end use project. The block may be allotted to an End User Company, JV or a Mining Company- which has firm back-to back tie up with specified End User Company (ies).-- The Mining Company should have a legally binding and enforceable supply contract/ agreement for the life of the mine. The coal produced from the block shall not replace any coal linkage given to the applicant by the Coal India Limited/its subsidiary companies and/or by the Singareni Collieries Company limited, without prior permission of this Ministry.-
-
ii)
The block is meant for captive use in their own specified end use projects or that of associates/end use company (ies) in case- of a mining company. -
-
iii)
In case it is required to beneficiate the inferior grade coal the middling generated shall be used for power generation in their own power plant i.e.- the useable middings/rejects generated during-- beneficiation shall- be used captively by the allocattee.-- The modalities of disposal of- surplus coal/ middlings/ rejects if any, would- be as per the prevailing policy/ instructions of the Government at the relevant point in- time and- could also include handing over such surplus coal/ middlings/rejects to the- local CIL subsidiary or to any person designated by it at a transfer price to be determined by the Government.
-
iv)
The coal production from the captive blocks shall commence within 36 months (42 months in case the area is in-- forest land ) of the date of allocation -in OC mine and in 48 months(54 months- in case-- the area fall under forest land ) from the date of allocation in UG mine.-- The end use project schedule and- the coal- mine development schedule should be modified- accordingly- and submitted to this Ministry within 3- months from the date of allocation.
-
v)
The Company shall buy the Geological report (in respect of fully explored blocks) from CMPDIL within six weeks of the date of allocation.
-
vi)
In respect of an unexplored block, the allocattee company shall apply for a prospecting license within three months of the date of issue of allotment.- The exploration shall be completed and geological report prepared within two years from the date of issue of prospecting license.
-
vii)
The company shall submit a bank guarantee equal to one year's royalty amount based on mine capacity as assessed by CMPDIL, and the weighted average royalty within 3 months of the date of this letter. Subsequently, upon approval of the mining plan the Bank Guarantee amount will be modified based on the final peak/rated capacities of the mine. -
-
viii)
The company shall submit a mining plan for approval by the competent authority under the Central Government within six months (in respect of explored blocks) from the date of this letter.-
-
ix)
In respect of an unexplored block, the mining plan shall be submitted for approval by the competent authority within two years and six months from the date of issue of the letter of allocation.
-
x)
50%- of the bank guarantee shall be linked- to the milestones ( time schedule) set- for development of captive block,-- and the remaining 50% to the guaranteed- production.- The bank guarantee shall be liable to the encashed- in the following- eventuality :
-
-i)-- There shall be an annual review- of progress achieved by an allocattee company. In the event of lapses,- if any,- in the achievements vis-a-vis the milestones set for that year,- a proportionate amount- shall be encashed and deducted from the bank guarantee.
-
ii)- Once production commences, in case of any- lag- in the production of coal/lignite, a- percentage of the bank guarantee amount- will be- deducted for the year.--- This percentage will- be equal to the percentage of deficit- in production for the year with- respect- to the rated/peak capacity of the mine, e.g., if rated/ peak capacity is 100,- production as per- the approved mining plan for the relevant year- is 50- and actual production is 35,- then ( 50-35)/100 x100 =15%- will lead- to deduction of 15% of the- original bank guarantee amount for the year.- Upon- exhaustion of the bank guarantee amount, the block shall be liable for de-allocation/cancellation of mining lease.
-
iii)-- The allocattee shall ensure that the bank guarantee remains valid- at all- times till the mine reaches its rated capacity or till the bank- guarantee is exhausted.- Any lapses on this count shall- lead to de-allocation/- cancellation of mining lease.
-
xi)
No coal shall be sold, delivered, transferred or disposed of except for the stated captive mining purposes except with the previous approval of the Central Government. -
-
xii)
Mining of coal from the allocated captive coal block shall be carried out in accordance with the applicable Statutes/Rules/Orders/Directions governing the mining of coal in the country.
-
xiii)
Those of the above conditions relevant at the time of grant of mining lease shall be included as additional conditions in the mining lease in addition to any further conditions imposed by or agreed to by the Central Govt.
xiv)
The State Government at the time of seeking previous approval for the grant of mining lease shall submit a draft of the mining lease containing the above relevant conditions for vetting by the Central Govt. The final mining lease shall be as vetted/modified by the Central Govt. Any deviation from the vetted/modified draft shall render the mining lease deed ab-initio null and void and without effect. -
-
xv)
Allocation / mining lease of the coal block may be cancelled, inter-alia, on the following- grounds:
-
(a)---------------------- Unsatisfactory progress of implementation of their end use sponge iron plant / power plant.
(b)---------------------- Unsatisfactory progress in the development of coal mining project.
(c)---------------------- For breach of any of the conditions of allocation mentioned at (i) to (xi) above.
-
The De-allocation/cancellation of mining lease shall be without any liability to the Government or its agencies, whatsoever. Any expenses incurred by the allocatee or any right or liability arising on the allocatee out of the measures taken by him shall solely be to his account and in no way be transferred to or borne by the Government or its agencies.
-
-xvi) The company may approach CMPDIL for the geological report and contact the State---- Government authorities concerned for the necessary permissions/clearances etc. for attaining mining rights and related matters.- The arrangement of transport of coal will have to be worked out by the company. -
xvii) In case of coal blocks acquired under the CBA Act, the mineral rights shall be surrendered by the Government Company to the State Government.-- On payment of necessary compensation/ considerations by the allocatee company- to the-- Government Company, the land shall be transferred to them and the State Government- shall grant- a mining lease over the area- in favour of the-- allocatee company under the provisions of-- and as per the procedure- prescribed- under the MM(D&R) Act and MC Rules.- Any delay beyond 2 months by Government Company in transferring the title /possession of land, as the case may be, can be claimed as grace period by the allocatee for the purposes- of conditions (iv) &(vii) above
-
i)
The allocation is made to meet the coal requirement of the permitted end use project. The block may be allotted to an End User Company, JV or a Mining Company- which has firm back-to back tie up with specified End User Company (ies).-- The Mining Company should have a legally binding and enforceable supply contract/ agreement for the life of the mine. The coal produced from the block shall not replace any coal linkage given to the applicant by the Coal India Limited/its subsidiary companies and/or by the Singareni Collieries Company limited, without prior permission of this Ministry.-
-
ii)
The block is meant for captive use in their own specified end use projects or that of associates/end use company (ies) in case- of a mining company. -
-
iii)
In case it is required to beneficiate the inferior grade coal the middling generated shall be used for power generation in their own power plant i.e.- the useable middings/rejects generated during-- beneficiation shall- be used captively by the allocattee.-- The modalities of disposal of- surplus coal/ middlings/ rejects if any, would- be as per the prevailing policy/ instructions of the Government at the relevant point in- time and- could also include handing over such surplus coal/ middlings/rejects to the- local CIL subsidiary or to any person designated by it at a transfer price to be determined by the Government.
-
iv)
The coal production from the captive blocks shall commence within 36 months (42 months in case the area is in-- forest land ) of the date of allocation -in OC mine and in 48 months(54 months- in case-- the area fall under forest land ) from the date of allocation in UG mine.-- The end use project schedule and- the coal- mine development schedule should be modified- accordingly- and submitted to this Ministry within 3- months from the date of allocation.
-
v)
The Company shall buy the Geological report (in respect of fully explored blocks) from CMPDIL within six weeks of the date of allocation.
-
vi)
In respect of an unexplored block, the allocattee company shall apply for a prospecting license within three months of the date of issue of allotment.- The exploration shall be completed and geological report prepared within two years from the date of issue of prospecting license.
-
vii)
The company shall submit a bank guarantee equal to one year's royalty amount based on mine capacity as assessed by CMPDIL, and the weighted average royalty within 3 months of the date of this letter. Subsequently, upon approval of the mining plan the Bank Guarantee amount will be modified based on the final peak/rated capacities of the mine. -
-
viii)
The company shall submit a mining plan for approval by the competent authority under the Central Government within six months (in respect of explored blocks) from the date of this letter.-
-
ix)
In respect of an unexplored block, the mining plan shall be submitted for approval by the competent authority within two years and six months from the date of issue of the letter of allocation.
-
x)
50%- of the bank guarantee shall be linked- to the milestones ( time schedule) set- for development of captive block,-- and the remaining 50% to the guaranteed- production.- The bank guarantee shall be liable to the encashed- in the following- eventuality :
-
-i)-- There shall be an annual review- of progress achieved by an allocattee company. In the event of lapses,- if any,- in the achievements vis-a-vis the milestones set for that year,- a proportionate amount- shall be encashed and deducted from the bank guarantee.
-
ii)- Once production commences, in case of any- lag- in the production of coal/lignite, a- percentage of the bank guarantee amount- will be- deducted for the year.--- This percentage will- be equal to the percentage of deficit- in production for the year with- respect- to the rated/peak capacity of the mine, e.g., if rated/ peak capacity is 100,- production as per- the approved mining plan for the relevant year- is 50- and actual production is 35,- then ( 50-35)/100 x100 =15%- will lead- to deduction of 15% of the- original bank guarantee amount for the year.- Upon- exhaustion of the bank guarantee amount, the block shall be liable for de-allocation/cancellation of mining lease.
-
iii)-- The allocattee shall ensure that the bank guarantee remains valid- at all- times till the mine reaches its rated capacity or till the bank- guarantee is exhausted.- Any lapses on this count shall- lead to de-allocation/- cancellation of mining lease.
-
xi)
No coal shall be sold, delivered, transferred or disposed of except for the stated captive mining purposes except with the previous approval of the Central Government. -
-
xii)
Mining of coal from the allocated captive coal block shall be carried out in accordance with the applicable Statutes/Rules/Orders/Directions governing the mining of coal in the country.
-
xiii)
Those of the above conditions relevant at the time of grant of mining lease shall be included as additional conditions in the mining lease in addition to any further conditions imposed by or agreed to by the Central Govt.
xiv)
The State Government at the time of seeking previous approval for the grant of mining lease shall submit a draft of the mining lease containing the above relevant conditions for vetting by the Central Govt. The final mining lease shall be as vetted/modified by the Central Govt. Any deviation from the vetted/modified draft shall render the mining lease deed ab-initio null and void and without effect. -
-
xv)
Allocation / mining lease of the coal block may be cancelled, inter-alia, on the following- grounds:
-
(a)---------------------- Unsatisfactory progress of implementation of their end use sponge iron plant / power plant.
(b)---------------------- Unsatisfactory progress in the development of coal mining project.
(c)---------------------- For breach of any of the conditions of allocation mentioned at (i) to (xi) above.
-
The De-allocation/cancellation of mining lease shall be without any liability to the Government or its agencies, whatsoever. Any expenses incurred by the allocatee or any right or liability arising on the allocatee out of the measures taken by him shall solely be to his account and in no way be transferred to or borne by the Government or its agencies.
-
-xvi) The company may approach CMPDIL for the geological report and contact the State---- Government authorities concerned for the necessary permissions/clearances etc. for attaining mining rights and related matters.- The arrangement of transport of coal will have to be worked out by the company. -
xvii) In case of coal blocks acquired under the CBA Act, the mineral rights shall be surrendered by the Government Company to the State Government.-- On payment of necessary compensation/ considerations by the allocatee company- to the-- Government Company, the land shall be transferred to them and the State Government- shall grant- a mining lease over the area- in favour of the-- allocatee company under the provisions of-- and as per the procedure- prescribed- under the MM(D&R) Act and MC Rules.- Any delay beyond 2 months by Government Company in transferring the title /possession of land, as the case may be, can be claimed as grace period by the allocatee for the purposes- of conditions (iv) &(vii) above
-
Poseidon
Senior Member
- Joined
- May 28, 2011
- Messages
- 2,000
- Likes
- 6,457
BJP wake-up: Coal scam involves three of your states
by FP Staff 26 mins ago
The BJP was quick off the blocks in raising the ante against the reigning UPA government for their alleged involvement in a coal scam in which the government gave away coal worth Rs 10.67 lakh, but can they really complain?
"The coal allotment scam is a major scam. We demand a CBI probe and a court should monitor the probe. It is a government of scamsters (that is) involved in knee-deep corruption," BJP leader Prakash Javedkar told reporters outside Parliament .
"In 2006, the government introduced the Bill for auction of coal blocks"¦But the government did not pass
the Bill till 2010. 17 billion tonnes of coal reserve in 73 blocks were distributed to private companies. It is a huge scam. There are many cases where people have sold the licences," he said.
However, among the beneficiaries of the largesse of the government, if we accept as truth the CAG draft report mentioned in the Times of India, include the mining corporations run by the states of Chhatisgarh, Jharkhand and Madhya Pradesh.
All three states are ruled by BJP governments and it would mean that they were the beneficiaries of receiving mining rights for land. They would have disposed off the coal blocks as seen fit and despite paying royalty to the central government should have made profits that were distributed in those states.
According the draft report, a major chunk of the windfall gains made by companies include government owned companies like National Thermal Power Corporation (NTPC) and Minerals and Metals Trading Corporation (MMTC).
The report stated that around Rs 5 lakh crore was made by government run bodies or companies while the remainder was sopped up by private companies.
If coal has indeed been given away at a loss to the exchequer the government must answer for it, but whether any political party can take the moral high ground is debatable.
BJP wake-up: Coal scam involves three of your states | Firstpost
Looks like both Sonia and Sushma are involved.
by FP Staff 26 mins ago
The BJP was quick off the blocks in raising the ante against the reigning UPA government for their alleged involvement in a coal scam in which the government gave away coal worth Rs 10.67 lakh, but can they really complain?
"The coal allotment scam is a major scam. We demand a CBI probe and a court should monitor the probe. It is a government of scamsters (that is) involved in knee-deep corruption," BJP leader Prakash Javedkar told reporters outside Parliament .
"In 2006, the government introduced the Bill for auction of coal blocks"¦But the government did not pass
the Bill till 2010. 17 billion tonnes of coal reserve in 73 blocks were distributed to private companies. It is a huge scam. There are many cases where people have sold the licences," he said.
However, among the beneficiaries of the largesse of the government, if we accept as truth the CAG draft report mentioned in the Times of India, include the mining corporations run by the states of Chhatisgarh, Jharkhand and Madhya Pradesh.
All three states are ruled by BJP governments and it would mean that they were the beneficiaries of receiving mining rights for land. They would have disposed off the coal blocks as seen fit and despite paying royalty to the central government should have made profits that were distributed in those states.
According the draft report, a major chunk of the windfall gains made by companies include government owned companies like National Thermal Power Corporation (NTPC) and Minerals and Metals Trading Corporation (MMTC).
The report stated that around Rs 5 lakh crore was made by government run bodies or companies while the remainder was sopped up by private companies.
If coal has indeed been given away at a loss to the exchequer the government must answer for it, but whether any political party can take the moral high ground is debatable.
BJP wake-up: Coal scam involves three of your states | Firstpost
Looks like both Sonia and Sushma are involved.
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
These days if someone doesn't like policy which makes money, it is termed as scam.
Let me put it this way, if a company has a policy of doing business with X marketing model which gets them 100 rupees profit. Suddenly someone tells them if you had done it in Y way, you would have made 200. Now were those handling the business with the X model scamsters?
Let me put it this way, if a company has a policy of doing business with X marketing model which gets them 100 rupees profit. Suddenly someone tells them if you had done it in Y way, you would have made 200. Now were those handling the business with the X model scamsters?
Well CAG has denied media reports saying they are misleading. In fact, the CAG report has not even been released to the GoI. Here is the official press release of the CAG letter to PM on the issue
Press Release from Prime Minister's Office
Press Release from Prime Minister's Office : Press Releases : Prime Minister of India - Dr. Manmohan Singh
With reference to the lead story published in the Times of India today titled "Government lost Rs 10.7 lakh cr by not auctioning coal blocks: CAG", the Prime Minister has received a letter from the Comptroller and Auditor General of India at 1:30 pm today.
Among other things, the letter clarifies that:
"In the extant case the details being brought out were observations which are under discussion at a very preliminary stage and do not even constitute our pre-final draft and hence are exceedingly misleading. "¦ Pursuant to clarification provided by the Ministry in exit conferences held on 9.02.2012 and 9.03.2012, we have changed our thinking "¦. In fact it is not even our case that the unintended benefit to the allocatee is an equivalent loss to the exchequer. The leak of the initial draft causes great embarrassment as the Audit Report is still under preparation. Such leakage causes very deep anguish."
I am calling bullshit on you man. Adani group bid for coal mines in Australia and Indonesia (that they bought by auction only), bought several ships to transport that coal to their own private port in India (near Gujju), created own railway lines from their port to their own private power plant, and generated electricity at the power plant is sold at market prices at Gujarat and Maharashtra. This is a fact.
Auction bites into the PROFITS of the multinational corporations. Who oppose auction.
Auctions don't affect the daily consumer electricity prices. That's the bottomline.
Secondly, I don't know off hand the electricity prices for China and India, but China's electricity prices are a politically sensitive topic there. Chinese govt has a upper cap on how much corporations can charge for electricity. That is lower than the market rate. Therefore, they have an a lot of power outages for load shedding purposes.
Thirdly, think about how Gujarat is handling the electricity issue. No power cuts, but peak electricity charges extra. That's all.
Last edited:
- Joined
- Mar 24, 2009
- Messages
- 24,324
- Likes
- 11,757
Really auctions don't affect consumers? The company who buy in auctions is not going to do charity and charge less an Beattie cost from its pocket.
What is the price of data in 2G and 3G? 65 rupees gives you 2.5GB but 100 rupees for 100 MB IN 3G plan. Why? Coz 3G was auctioned 2G was not. So who is paying the extra cost?
Oh BTW Gujarat may have uninterrupted power but it pays the price for it as well. 2008 report http://www.livemint.com/2008/02/04225806/Cost-of-electricity-is-set-to.html
pankaj nema
Senior Member
- Joined
- Oct 1, 2009
- Messages
- 10,148
- Likes
- 37,954
Something is definitely wrong
The loss to the exchequer might not be as huge as this ridiculous figure of 10 lakh crores but certainly
some Congress people have made money
Even if it is a scam of 10 thousand crores ,Congress party will suffer badly
The loss to the exchequer might not be as huge as this ridiculous figure of 10 lakh crores but certainly
some Congress people have made money
Even if it is a scam of 10 thousand crores ,Congress party will suffer badly
pankaj nema
Senior Member
- Joined
- Oct 1, 2009
- Messages
- 10,148
- Likes
- 37,954
There is an old Hindi saying
" Koyle ki Dalali mein moonh Kaala hota hi hai " It might just come true for Congress party
" Koyle ki Dalali mein moonh Kaala hota hi hai " It might just come true for Congress party
- Joined
- Dec 3, 2010
- Messages
- 4,768
- Likes
- 10,311
:brushteeth:
- Joined
- Jan 27, 2012
- Messages
- 12,835
- Likes
- 7,762
Sire really? I mean WTH. What was the price of the charges on 2G when they were first released in India? Only after several competitiors like MTS,Uninor a VIdeocon and others came did the prices come down.
So wait for three more years and 3G prices will fall.
So not auctioning it has nothing to do with the benefit the customers but more to do with the money these corporates and politicos make.
