Ministerial ping-pong led to hasty vetting of coal applicants' credentials

Minutes of crucial screening committee meetings raise several questions

Even as the central government battles charges of having allowed the allocation of coal blocks in a hasty and suspicious manner, a close look at the minutes of the screening committee meetings to consider the allocation of blocks for power generation, mentioned in the CBI FIR against JLD Yavatmal Energy, gives rise to several questions. The committee, headed by the coal secretary, completed the exercise of recommending companies from among 207 applicants for the allocation of 15 coal blocks within 85 days, in three meetings between June 20, 2007 and September 13, 2007.

The deliberations show the buck was passed when it came to checking the authenticity of the details provided by companies and finally a quick verification was done by the state governments. In the first meeting held during June 20-23, 2007, the minutes mention the committee could not finalise recommendations for the allocation, as the power ministry communicated on June 22, 2007 that it had not examined the applications case-by-case. The power ministry said it would be possible to communicate its official views only after all the data and presentations by the developers before the screening committee were analysed. It sought more time for that purpose.

In the second meeting on July 30, 2007, the power ministry furnished its views with the observation that the authenticity of data and comments submitted needed to be separately verified. The committee then decided the state governments be asked to carry out a quick verification of the data used by the power ministry for the techno-economic evaluation of end-use projects.

QUICK VERIFICATION

• After 207 applications, 15 blocks allocated in 85 days
• Power ministry asks for time for case-by-case verification on June 22, 2007
• Power ministry on July 30 calls for separate verification of authenticity of applicants’ information
• Verification done within 43 days, companies selected for allocation on Sept 13, 2007
• Satisfaction range of 40-70% settled for during verification

Within 43 days, the panel convened its third and final meeting on September 13, 2007 and it was said the verification reports from most of the state governments had been received and placed before the screening committee, according to the minutes.

Interestingly, it is also mentioned that in view of the large number of applications and the limited number of blocks on offer, the committee felt it would be reasonable to have a satisfaction level in the range of 40-70 per cent, to the extent feasible.

The committee then recommended names of private companies for the allocation of 15 coal blocks for power generation. The CBI in its FIR has alleged misrepresentation and deception by Congress MP Vijay Darda’s company, JLD Yavatmal Energy, and pointed at criminal conspiracy and negligence by coal ministry officials in the allocation of blocks during 2006-09.