New Delhi:
As the heat on the government over allegations of corruption in coal block allocations increases, comes a new bombshell. For the first time, a top official who had a ringside view of coal allocation has admitted that the existing system of allotting captive mines, which gave huge profits to power companies, was ripe for corruption.
PC Parakh, who was the Coal Secretary in 2004-05, has told NDTV in an exclusive interview that he doesn't rule out corruption in coal allocation. Mr Parakh also added that the government's screening committee, which allotted the mines, was subject to pressures from both central ministries and state governments lobbying for their favourites.
"Corruption does not necessarily take place with wrong decisions but also with right decisions. When you are giving assets worth 1000 and crores rupees without charging anything I don't think any allottee would mind passing on a few benefits to others. So I can't really rule it out," said Mr Parakh.
The government, in its defense, has argued that the allotments were made by a Screening Committee with members from ministries of Coal, Steel and Power, as well as representatives of the state governments. The government also says that this is Mr Parakh's individual view.
"No, it may be his individual view. There are other ministries. This is not only the Coal Ministry. Coal Ministry is one. There are the Power Ministry, the Steel Ministry officials," said Minister of State in the Prime Minister Office, V Narayanasamy.
But Mr Parakh says that members of the screening committee - from both central ministries and states - lobbied for their favourites.
"Pressure could come from all quarters. It could come from state governments or ministries sponsoring different parties. Pressure comes from all these quarters," he said.
Mr Parakh says the PM was keen to switch to a new and transparent bidding-based system, but was unable to do so because of a lack of political backing.
In a 2004 letter to the Prime Minister's Office, which was handling the Coal Ministry at that time, Mr Parakh says he had proposed a switch to a more transparent bidding-based system. What followed is almost two years of correspondence between the Coal Secretary and the PMO, with the Coal Secretary demanding urgency in shifting to a new transparent policy, and the PMO suggesting that the existing system continue, given the delays in building a political consensus, as well as negotiating legislative hurdles.
Mr Parakh says the delays reflect the various lobbies at work which prevented the PM from making the shift.
"The Prime Minister was definitely in support of the proposal but nothing happened... My view is that both industry and political system at that time were not willing to change the system. Therefore to my mind the delays were deliberate and not necessary," Mr Parakh said.
Asked whether he put his concerns on the record, this is what he had to say: "All my notings on the file were very clear; they indicate that unless we introduce a transparent system, wrong things can happen."
PC Parakh, who was the Coal Secretary in 2004-05, has told NDTV in an exclusive interview that he doesn't rule out corruption in coal allocation. Mr Parakh also added that the government's screening committee, which allotted the mines, was subject to pressures from both central ministries and state governments lobbying for their favourites.
"Corruption does not necessarily take place with wrong decisions but also with right decisions. When you are giving assets worth 1000 and crores rupees without charging anything I don't think any allottee would mind passing on a few benefits to others. So I can't really rule it out," said Mr Parakh.
The government, in its defense, has argued that the allotments were made by a Screening Committee with members from ministries of Coal, Steel and Power, as well as representatives of the state governments. The government also says that this is Mr Parakh's individual view.
"No, it may be his individual view. There are other ministries. This is not only the Coal Ministry. Coal Ministry is one. There are the Power Ministry, the Steel Ministry officials," said Minister of State in the Prime Minister Office, V Narayanasamy.
But Mr Parakh says that members of the screening committee - from both central ministries and states - lobbied for their favourites.
"Pressure could come from all quarters. It could come from state governments or ministries sponsoring different parties. Pressure comes from all these quarters," he said.
Mr Parakh says the PM was keen to switch to a new and transparent bidding-based system, but was unable to do so because of a lack of political backing.
In a 2004 letter to the Prime Minister's Office, which was handling the Coal Ministry at that time, Mr Parakh says he had proposed a switch to a more transparent bidding-based system. What followed is almost two years of correspondence between the Coal Secretary and the PMO, with the Coal Secretary demanding urgency in shifting to a new transparent policy, and the PMO suggesting that the existing system continue, given the delays in building a political consensus, as well as negotiating legislative hurdles.
Mr Parakh says the delays reflect the various lobbies at work which prevented the PM from making the shift.
"The Prime Minister was definitely in support of the proposal but nothing happened... My view is that both industry and political system at that time were not willing to change the system. Therefore to my mind the delays were deliberate and not necessary," Mr Parakh said.
Asked whether he put his concerns on the record, this is what he had to say: "All my notings on the file were very clear; they indicate that unless we introduce a transparent system, wrong things can happen."
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