GOVERNMENT OF INDIA

MINISTRY OF COAL

LOK SABHA

UNSTARREDQUESTION NO: 830

ANSWERED ON: 27.11.2012

INQUIRY INTO COAL SCAM 

(a) the current status of investigations carried out by the Central Bureau of Investigation (CBI) on the recommendations of CVC into the alleged irregularities in the allocation of coal blocks during the period 2006-09; 

(b) whether the allocation of coal blocks in some cases have been cancelled; 

(c) if so, the details thereof and the reasons therefor; and

  (d) the steps taken  proposed to be taken by the Government to speed up these investigations?

ANSWER

(a) to (d): Central Bureau of Investigation (CBI) has registered Preliminary Enquiry cases to investigate the alleged irregularities in allocation of coal blocks to private companies from 2006 to 2009 and from 1993 to 2004. As informed by CBI, in respect of 9 companies 9 FIRs have been registered and investigation of Regular Cases and the Preliminary Enquiry are underway on priority. 

 The responsibility of developing the coal block as per the prescribed guidelines and milestone chart attached with the allocation letter rests entirely with the allocatee company. Further, the allocatees have to submit Bank Guarantee which remains valid at all the times till the production from the coal block reaches its peak rated capacity. The Coal Controller’s office monitors on regular basis the achievement of different milestones. Government periodically monitors and reviews the development of allocated blocks as well as end use plants of the allocatee companies in the Review Meetings. The review is undertaken periodically with all the coal block allocatees to assess the developmentprogress achieved by them. In case of willful delays on the part of allocatees, appropriate action is initiated for de-allocation of the block. 

Further, an Inter-Ministerial Group (IMG) under the Chairmanship of Additional Secretary (Coal) with representatives from the Ministries of Power, Steel, Law & Justice and Departments of Economic Affairs and Industrial Policy and Promotion has been constituted on 21.06.2012 which inter-alia would undertake periodic review and monitor the progress of allocated coallignite blocks and make recommendations on action to be taken including de-allocation, if required. 

Based on such reviews, the Government has so far de-allocated 37 coal blocks.