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Govt refuses to take back unmined coal blocks from the thieves


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That seems to be the only way left now. Fecking allocation nonsense like some license Raj babugiri. This is why economic reforms happened so that such national resources can be auctioned and let market forces determine prices.

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Coal Minister Jaiswal says after Sept 16 blocks will be investigated and those who are just sitting on it to make windfall gains will have their allocations revoked and severe criminal charges will be brought against them post a CBI investigation for attempting to profiteer from national resources. Step in the right direction.

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At last some action, central still in denial :headshake: Coal scam: CBI files FIR against 5 companies http://www.thehindu.com/news/national/article3857455.ece

The companies named in the FIR by the CBI are Vini Iron and Steel, Nav Bharat Steel, JLD Yavatmal, which is said to be linked to the family of Congress MP Vijay Darda, JAS infrasrtucture of Abhijeet Group and AMR Iron and Steel and their directors and unknown government officials, the CBI said.
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Some media firms among coal block allottees Unlikely beneficiaries of coal block allocations are some media firms that, in their quest to diversify business operations, got blocks allocated in the names of their subsidiaries or group firms. These media firms include Dainik Bhaskar group, Lokmat group and Prabhat While Dainik Bhaskar obtained a coal block for its subsidiary power firm DB Power Ltd in Chhattisgarh, Marathi news daily Lokmat had one allocated in Chhattisgarh in the name of JLD Yavatmal Energy. Jharkhand-based news daily Prabhat Khabar got a block in the name of Usha Martin Ltd in the state. “A company’s net worth increases manifold if it has a pie in the country’s natural assets. And, if this asset is coal, which is directly linked to power production, it adds weight to a company’s net worth,” a senior government official told HT. Two factors have contributed to these media firms’ ability to get coal bocks allocated. One, the rapid consumption of mass media made them flush with surplus capital. Second, the ever-increasing demand for electricity in India has prompted many firms, which included these media companies as well, to look at diversification into power production. As thermal power still accounts for around 70% of electricity production in India, it was only natural for any firm keen to have power generation capacity to get into thermal power production. “All these media firms had enough funds for investment, which they utilised in getting coal blocks allocated for their subsidiary or front companies,” the official added. He further explained that it made “business sense” for a firm to first have coal blocks allocated under its ambit and then expand into thermal power production. Incidentally, developing coal bocks is a complex issue that requires specialised skills. The media firms that got coal bocks clearly lacked them and had been squatting on those over the past five years amid allegations from the national auditor — CAG — that the government had arbitrarily allocated coal blocks, sacrificing precious revenue. http://www.hindustantimes.com/India-news/NewDelhi/Some-media-firms-among-coal-block-allottees/Article1-926286.aspx

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Indirectly these mantries have shares if not own the companies which were allotted mines so why would they cancel their own deals
And this system is made complex to hide such convoluted investments, no?
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