This refers to the report "Coal auction to generate $100 billion for states: Goyal" (January 25). The current government deserves credit for deciding on the auction of coal mines and for channelising additional revenue such as penalties, auction proceeds and royalty to the states. More importantly, states should use this cash to restore the environment around the mines, provide facilities for project-affected people and build proper infrastructure. They should not blow it away on populist programmes. One, however, marvels at the confidence of Piyush Goyal when he forecasts that the states will get between Rs 5-7 lakh crore over the next 30 years. More astonishing is the claim that power rates will come down substantially. How this will happen with the auction cost burden, with both the coal-producing and power-generating units making money, remains a mystery.
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P Datta Kolkata
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number