Odisha Chief Secretary JK Mohapatra’s letter to Union Coal Secretary SK Srivastava last month for freezing the coal files is all set to trigger a war of wits between the State and the Central Governments.
When the Odisha Government decided to freeze the process of coal mining in the State, it virtually meant darkness for half of the country.
The freezing of clearances for coal blocks allocated between 1993 and 2012 would bring projects worth trillions of rupees to a halt. Key sectors like power, aluminium, steel and cement would be greatly affected, feel captains of industry.
However, the State Government feels that since the issue of coal block allotment is subjudice, it is not proper to go ahead with the clearances. Also, the decision regarding allocation of the coal blocks is now under the scanner of the CBI, which is investigating into the coal scam under the supervision of the Supreme Court.
The Comptroller and Auditor General (CAG) too is watching the situation ever since it pointed out that there were huge revenue losses for not allotting coal blocks through auction.
The Odisha Chief Secretary's letter seems aimed at helping Chief Minister Naveen Patnaik since the CBI has questioned the propriety of Patnaik’s “strong” recommendation letter to the Prime Minister for allocation of the Talabira II coal block to Hindalco.
It was last year that the State Government wrote to the Centre that it would not process files relating to coal blocks allotted after 2009 which were under the purview of the CBI probe. Then, the Centre in December 2012 advised the State to go ahead with the clearances of the files as per law. But the CBI FIR against Hindalco Chairman Kumarmangalam Birla and former Union Coal Secretary PC Parakh put the State Government in a fix.
The Talabira II coal block case clearly sent signals that CBI may institute a case relating to coal block allotted between 1993 and 2012 and may name anybody in the FIR. What irked the Odisha Government was that the Centre did not bother to keep the State in the loop of development.
The Prime Minister’s Office (PMO) obviously sought to pass on the blame to Naveen Patnaik for his “strong” argument in Hindalco’s favour.
On the other hand, Chief Secretary Mohapatra has also raised the issue of compensation to the State for the loss due to allotment of the coalmines outside the auction route which has put the Coal Ministry in a fix.
The CBI’s probe into the Coalgate is, in fact, turning into anxiety for all stakeholders and the Centre and the State would keep blaming each other. And at a time when the general recession is hitting the industries, freezing coal blocks allocation would worsen the situation.
The State Government has signed MoUs with as many as 29 private power companies for setting up of Independent Power Projects (IPPs). Besides, the NTPC and the Union Ministry of Power through the Ultra Mega Power Project route are coming up with three projects in the State.
Public sector utilities of Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra, Gujarat, Assam and Meghalaya have also been allotted coal blocks in Odisha.
However, industry bodies like the FICCI and the Utkal Chamber of Commerce and Industries (UCCI) are quite hopeful that the State Government would soon reconsider its decision. A senior UCCI member said the State Government is only supposed to process the land lease files; it has nothing to do with the minerals lying below the land.
Notwithstanding the points and counter points, the Coalgate is likely to keep the controversy flaming for some more time.