4 big groups gained 75k cr on allotment Tatas Earned 29K Cr, Jindal Cos 24K Cr

New Delhi: The top 10 beneficiaries of coal block allocations together cornered windfall gains of Rs 1,13,000 crore as calculated by the CAG in its Coalgate report. 

    Tata group companies benefitted the most with over 2,000 million tonnes of reserves accruing to them through allocations of open cast mines valued at Rs 29,000 crore. The second highest benefit went to Naveen Jindal group firms with gains of an around Rs 24,000 crore. Four groups — Tatas, Naveen Jindal, Bhushan (Brij Bhushan) and Abhijit group, headed by Manoj Jayaswal — cornered mines with reserves of over 5,600 million tonnes worth Rs 75,000 crore. 
    Others who managed a big pie include the Pradeep Kumar Khaitan-led Electrosteel group, the Adhunik group of Mahadeo Prasad Agarwal, the S R Rungta group and the Sajjan Jindal group. Each of them managed to get open cast mines with geological reserves of 500 million tonnes and above valued at Rs 5,000-8,000 crore each. Some of these companies were favoured by taking away explored mines from Coal India (CIL) and given to them on the advice of the PMconstituted Energy Coordination Committee (ECC). 
    The ECC had decided in February 2006 to take away explored mines from CIL and give them to private companies on the premise that they will start early production and bridge the huge shortfall in supply. It was also expected to help cut the import bill on coal and, thus, curb the rising current account deficit. 
    However, contrary to expectation, no production materialized in these blocks. Ever since, CIL has been battling with the ministry for fresh blocks to meet demand. Jindals, Tatas favoured over PSUs: Ahir New Delhi: Coal blocks were allotted to Jindal Steel and Power and a Tata firm for liquefaction projects in 2009 uncomfortably close to the general elections, BJP MP Hansraj Ahir has alleged in a letter to the PM. They were favoured to the exclusion of public firms, he claimed. Ahir, who drew the attention of CVC and other institutions to irregularities in coal block allocations, said, "Proper process for the allotment of these coal blocks has not been followed." 
    Ahir has alleged that the entire process was "done under the monitoring and chairmanship of the Planning Commission of India". He said the two companies — JSPL and SETSL (Strategic Energy Technology Systems) — were given two coal blocks "going against the guidelines of the coal ministry". TNN