Expressing concern on the future of the group’s captive coal block, Essar Group Chairman Shashi Ruia on Saturday said if the government wanted more private sector investment, natural resources should not be in its exclusive domain.
“There is a need for resources like iron ore, coal, crude, gas, power and water ….Natural resources cannot be in the exclusive domain of the government,” he said, while addressing the 84th annual general meeting of the Indian Chamber of Commerce here.
Highlighting the procedural hurdles and issues faced by firms that have invested in the power and coal sectors, he said, “First, we had a problem with environment hurdles. Now, it is the latest note by the Comptroller and Auditor General (CAG). Now, we don’t even know whether we would still own the mine allocated to us. The plan is already in place. I have Rs 450 crore worth of mining equipment lying at the mines, for which I have got environment approvals. I am unable to move ahead for the last three years. I don’t have the coal to supply to power plants.” He added the prevailing scenario was akin to a witch-hunt.
A CAG report had accused the government of awarding the nation’s coal deposits to private and state-run entities without auctioning these, which had allegedly led to a loss of about Rs 10,00,000 crore. A major coal block under the group subsidiary is at Mahan in Madhya Pradesh. There, Essar Energy was unable to start work due to delay in securing clearances for long. The Mahan coal block was scheduled to be used for its power projects at Mahan and Tori.
Ruia added subsidies given in the fuel sector were not related to a rises or declines in prices, as these were paid as taxes.