 "Do you want coal ministry to be dissolved?: Shriprakash Jaiswal")
Despite being under attack for more than a year, Coal Minister Shriprakash Jaiswal does not give an impression of a man under the weather. In an interview with Sudheer Pal Singh and Jyoti Mukul, he flaunts the sector's improved performance and says the proposed coal regulator cannot be vested with all the powers of his ministry. Edited excerpts:
It has been a difficult year for the coal ministry and Coal India, due to allegations of corruption and shortages. Do you think the sector looks better now?
The challenges faced by the sector have been unparalleled in recent years. At one point, hydropower capacity was coming up but not any more. The coal ministry and Coal India were under attack from all sides. Whatever happened in UPA-I (the 2004-09 period of the United Progressive Alliance government) is being inquired into. But, going forward, coal production will increase so that we are able to meet the power sector requirement and our growth improves, which is what the Prime Minister wants and we should be able to achieve it.
We managed to improve production through concerted efforts. We emphasised on the selection of effective officers. This is not just about the chairman and managing director of Coal India but also directors and chief general managers.
After that, there was close monitoring of production. Production, offtake and overburden removal has increased. We cannot turn Coal India (CIL) into a private company. The difference between a private and a government company will always remain. But in adverse circumstances, whatever we could do to improve the functioning of Coal India, we did.
Coal India enjoys a monopoly.
If it was so, it would have been selling at twice or thrice the international price in the domestic market. In the past four years, the coal price was increased by only 10 per cent. Coal India's price was higher than the global price at one point because international prices fell.
Are you taking up Coal India's case for clearing of its dues?
We have asked companies to clear the dues but at the same time, we have tried to address the concerns of CIL customers. Complaints relate to the gross calorific value. There must be some substance to the complaints. The quality of coal also depends on geo-mining conditions. Whatever quality of coal is available would be supplied. But if there is some tampering in the quality, then we will be address it.
Why isn't the government giving complete pricing power to the regulator?
Do you want the coal ministry to be dissolved? Whatever powers are required to be given to the regulator with regard to pricing, quality and supply, those powers will be given to the coal regulatory authority. But if you think that everything will be done by the regulator, then it will not happen. There will be checks and balances. There can be corruption even within a regulatory authority. They might increase and decrease the price and indulge in arbitrary decisions. In a democracy, you cannot shut down the coal ministry. This will be an insult to the people.
Do you think coal capacities were put up blindly without assessing the availability?
When captive blocks were given out, the understanding was mining would improve. If you say coal blocks were given to the wrong people, it is not correct. Fifty per cent of the blocks were in places where forest and environment clearances were not coming and 20 per cent were in places where land acquisition did not happen. There were some blocks where there was wrong information given out by companies. It was the responsibility of officers to ensure company and plant details were correct. They must have been some wrongdoing otherwise how so many complaints would not have come and CBI (the Central Bureau of Investigation) would not have filed 11 FIRs (First Information Reports).
But this can happen in any sector. Even in road and infrastructure construction, we find the work is sometimes not up to the mark. The vested interest of officers comes in the way. But people who blame the Prime Minister are just playing politics. If this PM is being blamed, then all PMs since Independence should be blamed.
The Supreme Court has reprimanded an officer in your ministry for interfering with the CBI status report. Were you aware of such an interference?
When the CBI inquiry started last year, the ministry's chief vigilance officer was responsible for providing information. He must have visited CBI a number of times. It is not my job to know about that. But if there is something that happened out of the way, then the Supreme Court is looking into it and we will abide by that (verdict). Beyond this, I would not like to comment.
How far do you think coal production will improve? Would you attribute this to the setting up of the Cabinet Committee on Investment (CCI)?
The constraints six months earlier have reduced, whether in clearances or in land acquisition. We are going to exceed the target. Not just CCI but the Prime Minister has been giving us directions and has been telling us that coal (supply) is the biggest challenge. The policy framed since 1993 has been carried forward.
Would you take up the case of captive mines given to private companies with CCI?
If crores of bank money were stuck in projects, whether public or private, we need to hasten clearances for these.
You have in the past said the work on setting up of a coal regulator would be speeded but that has not happened. Why the delay?
I wanted the coal regulatory authority. The ambit of coal companies is huge and the extent of Coal India's responsibility and the complaints that come with regard to quality, quantity and FSAs (fuel supply agreements) are large. If there is a regulator for it, then it will be good. Within 10-15 days, the group of ministers will finalise its recommendations. One more meeting might be needed.
The government had said coal blocks would be bid out by December 2012 but that has not happened. Why?
The delay is because we want a 100 per cent transparent system on how bidding is done and how rules are framed. CRISIL has given a report. We want to conduct everything systematically, so that no one points out mistakes. We will be able to come out with bidding norms in one or two months.
It has been a difficult year for the coal ministry and Coal India, due to allegations of corruption and shortages. Do you think the sector looks better now?
The challenges faced by the sector have been unparalleled in recent years. At one point, hydropower capacity was coming up but not any more. The coal ministry and Coal India were under attack from all sides. Whatever happened in UPA-I (the 2004-09 period of the United Progressive Alliance government) is being inquired into. But, going forward, coal production will increase so that we are able to meet the power sector requirement and our growth improves, which is what the Prime Minister wants and we should be able to achieve it.
We managed to improve production through concerted efforts. We emphasised on the selection of effective officers. This is not just about the chairman and managing director of Coal India but also directors and chief general managers.
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After that, there was close monitoring of production. Production, offtake and overburden removal has increased. We cannot turn Coal India (CIL) into a private company. The difference between a private and a government company will always remain. But in adverse circumstances, whatever we could do to improve the functioning of Coal India, we did.
Coal India enjoys a monopoly.
If it was so, it would have been selling at twice or thrice the international price in the domestic market. In the past four years, the coal price was increased by only 10 per cent. Coal India's price was higher than the global price at one point because international prices fell.
Are you taking up Coal India's case for clearing of its dues?
We have asked companies to clear the dues but at the same time, we have tried to address the concerns of CIL customers. Complaints relate to the gross calorific value. There must be some substance to the complaints. The quality of coal also depends on geo-mining conditions. Whatever quality of coal is available would be supplied. But if there is some tampering in the quality, then we will be address it.
Why isn't the government giving complete pricing power to the regulator?
Do you want the coal ministry to be dissolved? Whatever powers are required to be given to the regulator with regard to pricing, quality and supply, those powers will be given to the coal regulatory authority. But if you think that everything will be done by the regulator, then it will not happen. There will be checks and balances. There can be corruption even within a regulatory authority. They might increase and decrease the price and indulge in arbitrary decisions. In a democracy, you cannot shut down the coal ministry. This will be an insult to the people.
Do you think coal capacities were put up blindly without assessing the availability?
When captive blocks were given out, the understanding was mining would improve. If you say coal blocks were given to the wrong people, it is not correct. Fifty per cent of the blocks were in places where forest and environment clearances were not coming and 20 per cent were in places where land acquisition did not happen. There were some blocks where there was wrong information given out by companies. It was the responsibility of officers to ensure company and plant details were correct. They must have been some wrongdoing otherwise how so many complaints would not have come and CBI (the Central Bureau of Investigation) would not have filed 11 FIRs (First Information Reports).
But this can happen in any sector. Even in road and infrastructure construction, we find the work is sometimes not up to the mark. The vested interest of officers comes in the way. But people who blame the Prime Minister are just playing politics. If this PM is being blamed, then all PMs since Independence should be blamed.
The Supreme Court has reprimanded an officer in your ministry for interfering with the CBI status report. Were you aware of such an interference?
When the CBI inquiry started last year, the ministry's chief vigilance officer was responsible for providing information. He must have visited CBI a number of times. It is not my job to know about that. But if there is something that happened out of the way, then the Supreme Court is looking into it and we will abide by that (verdict). Beyond this, I would not like to comment.
How far do you think coal production will improve? Would you attribute this to the setting up of the Cabinet Committee on Investment (CCI)?
The constraints six months earlier have reduced, whether in clearances or in land acquisition. We are going to exceed the target. Not just CCI but the Prime Minister has been giving us directions and has been telling us that coal (supply) is the biggest challenge. The policy framed since 1993 has been carried forward.
Would you take up the case of captive mines given to private companies with CCI?
If crores of bank money were stuck in projects, whether public or private, we need to hasten clearances for these.
You have in the past said the work on setting up of a coal regulator would be speeded but that has not happened. Why the delay?
I wanted the coal regulatory authority. The ambit of coal companies is huge and the extent of Coal India's responsibility and the complaints that come with regard to quality, quantity and FSAs (fuel supply agreements) are large. If there is a regulator for it, then it will be good. Within 10-15 days, the group of ministers will finalise its recommendations. One more meeting might be needed.
The government had said coal blocks would be bid out by December 2012 but that has not happened. Why?
The delay is because we want a 100 per cent transparent system on how bidding is done and how rules are framed. CRISIL has given a report. We want to conduct everything systematically, so that no one points out mistakes. We will be able to come out with bidding norms in one or two months.