32 Facts about Coalmine Scam Coalgate Scam
Coal scam is the mother and father of all scams, it is one of the biggest scam happened in India.
Following are the facts about Coal scam.
Coal Scam happened between 1993 and 2012 and is still continuing and going on
government of India gave away 206 coal blocks for free to government and private companies
41 out of the 206 blocks given away free were allocated before the end of 2003.
165 blocks were allocated between 2004 and 2011
Since May 2004, UPA Congress is ruling India, thus Majority coal blocks were given free by Congress party of India.
Prime Minister Manmohan Singh was the Coal Minister between period 2006 and 2009. From year 2006, Prime Minister Manmohan Singh hold the very very very important positions when the scam was unfolding and happening under his nose and with his permission.
Between 2006 to 2009 period, 134 coal blocks were given away free.
India has around 286 billion tonne of geological reserves of coal.
Nomura Equity Research suggests that between 2006 and 2009, the coal blocks given away free had geological reserves of around 40 billion tonne.
This means around 14% of total geological reserves of coal was given away free during the period Manmohan Singh was the coal minister.
What was the reason Government gave away Free Coal to Private companies when government says, tries to cancel and reduce the subsidies given to the Poor Indian Citizens. The government-owned Coal India Ltd was unable to increase the coal production requires by the government, but I am sure Coal India can produce Coal to provide whole of the world.
Coal India just needs the support of government of India which they never get as per my own thinking.
What Private companies give to Politicians, Coal India cannot give that to our Politicians, Coal Ministers, Political Parties.
How the Coal Scam came into light and public = Only one honesty award winning government department that is CAG brought this Coal scam into Public domain by fearless auditing.
CAG assumed that the coal mined from the coal blocks given away for free could have been sold at a certain price in the market,
Do you remember in 2G scam, spectrum was sold but still corruption was found, here they just gave away free of cost coal mines to private companies which are like diamond mines, ever heard any government has given diamond mines free to private company?
Since the government gave away the blocks for free, it lost income or funds.
This lost income, funds is what CAG has tried to quantify in terms of money, monetary funds, loss to Indian citizens
how much money was given away free to private companies?
CAG did not take into account the coal blocks given to the government companies while calculating losses to Indian citizens amounted because of free coal block policy.
Only blocks given to private companies were taken into account by CAG.
Only opencast mines were included in calculating the loss to citizens of India. Underground mines were not taken into account by CAG while calculating losses to citizens of India.
The total coal available in a block is referred to as geological reserve.
The portion that can be mined is referred to as extractable reserve.
The extractable reserves for the blocks (after ignoring the blocks owned by government companies and underground mines) came to 6,282.5 million tonne.
This is equivalent to more than 14 times the annual production of Coal India Ltd. And this is the amount of coal the government would have been able to sell if it had not given the blocks away free to private companies.
The government gave away 6282.5 million tonne of coal for free.
The CAG first calculated the average sale price for all grades of coal sold by Coal India in 2010-2011.
This came to Rs1,028.42 per tonne.
It then calculated the average cost of production for all grades of coal for the same period.
This came at Rs583.01 per tonne.
Other than this, there was a financing cost of Rs150 per tonne which was taken into account, as advised by the ministry of coal.
Hence a benefit of Rs295.41 per tonne of coal was arrived at (Rs1,028.42 – Rs583.01 – Rs150).
The losses were thus estimated to be at Rs1,85,591.33 crore (Rs295.41 x 6282.5 million tonne), or around Rs1.86 lakh crore, by the CAG.
The CAG does not take into account the losses on account of blocks given away free to government companies.
CAG had assumed extractable reserves of a conservative 73% in case of mines where mine plans were not available. Typically, extractable reserves are around 95% of geological reserves.
The CAG has also been very conservative in calculating the benefit per tonne of coal by taking the average price of coal sold by Coal India Ltd. This price is typically the lowest in the market. Coal from other sources is very expensive.
Coal India also sells coal through an e-auction.
The price of coal sold through this route is higher than the normal Coal India price.
As the CAG has pointed out in its performance audit of ultra-mega power projects,
the average e-auction price for Coal India coal was Rs1,782 per tonne in 2010-2011.
Imported coal sells at an even higher price.
The landed cost of imported coal was Rs2,874 per tonne (based on NTPC data for November 2009), reports CAG.
If these prices had been taken into account or a weighted average price would have been created using these prices as well as the average Coal India price of Rs1,028.42 per tonne, the loss number would have been higher than Rs1.86 lakh crore.
CAG has not calculated the share price of the companies how they got increased as soon as they got the coal block and company owners made profits because of that.
Just like any other Agency CAG is also performing under Politicians but they are trying to do their job honestly as much as possible.
The Comptroller and Auditor General (CAG), in its report, estimated that the losses due to the policy of the government giving out coal blocks free amounted to Rs1.86 lakh crore.
Thus any person says or speaks a bad word for the year 2012 regarding CAG is the biggest thief and bad man born in India and he needs to be given death punishment for insulting CAG or SIT should be formed to investigate is he a beneficiary of Coal Scam.
Oxygen, Air is abundant available in unlimited Quantity but Coal is a limited natural resource once it is finished its forever thus One cannot give Coal Free saying its natural resource or giving any other reason.
Reality views by sm –
Tuesday, September 25, 2012
Tags – Coal Mine Coalgate Scam
25 September 2012
32 Facts about Coalmine Scam Coalgate Scam