New Delhi:
The coal scam, centred on companies faking papers and expertise to corner under-priced coal fields, has so far offered corroborative proof of crony capitalism and circumstantial evidence of corruption. The CBI has so far filed seven cases against companies and their directors for charges that include cheating and conspiracy. Two Congress politicians -the Darda brothers from Maharashtra- have been named in those cases.
So far, the CBI had been examining the allocation of coal fields from 2004-2009, the first term of the UPA. Now, the investigation will go back to 1993 - so the permits given by the BJP-led coalition, the NDA, will also be post-mortemed.
That decision was ordered by the country's top anti-graft body, the Central Vigilance Commission (CVC). In May this year, Prakash Javadekar and Hansraj Ahir of the BJP asked the Vigilance Commission to study the allocations cleared by the UPA. Last week, the Congress reciprocated. Coal Minister Sriprakash Jaiswal asked the Commission to study mine allocations since 1993. Today, his request was granted.
"The story starts from 2004 but if somebody wants to go back to 17th century, we have no objection," Mr Javadekar told NDTV.
The allocation of coal blocks to private companies started in 1993 to help grow power, steel and cement plants whose needs could not be met by the state-run Coal India Limited.
Last month, the national auditor said in a report that private firms benefited by upto 1.86 lakh crores because coal fields were not auctioned. The BJP grabbed the finding to demand the Prime Minister's resignation. For the government, this has become the latest and largest in a long list of financial scandals that unfurled during its freshman term.
The letter that Mr Jaiswal forwarded last week to the Vigilance Commission was signed by seven Congress MPS who allege that the NDA used political pressure and influence to benefit companies looking for coal blocks. They have also asked for details of how private firms were selected for joint ventures with the government.
From 1993 to 2004, 40 coal licenses were sanctioned. After the UPA was voted into power in 2004, nearly 200 coal blocks have been allocated.
The UPA has insisted that it implemented the coal policies set by its predecessor, and that when it tried to introduce a competitive bidding process to increase transparency, several states governed by the BJP objected because they said this would make mining more expensive and adversely impact industrial development in their states.
Already perceived as an administration shackled in graft, the government has refuted the auditor's conclusions and has set up a committee that is reviewing 58 coal permits where the licensees failed to meet the deadlines laid out in their contracts for developing their coal blocks. So far, the committee's recommendations gave led to the cancellation of 12 licenses.