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Coal | August 05, 2013
#37667

Politicians influenced coal block allocation

Media reports indicate that politicians and several ministers of the ruling UPA- government influenced the allocation of coal blocks to some companies.

   

For example, Parliamentary Affairs Minister Kamal Nath and Home Minister Sushil Kumar Shinde have reportedly supported allocation of coal blocks to Lanco Infratech.

   

Nath, who was commerce minister at the time, wrote to the PM's then principal secretary TKA Nair asking that the allocation of Mandla coal block be brought up to the "notice of the prime minister".

   

The coal block, which was originally recommended for allocation to a power plant in Nath's constituency Chhindwara, was being considered for a cement plant instead. Lanco was setting up the power plant. A letter of endorsement for Lanco was also written by then Power Minister Sushil Kumar Shinde to the then Coal Minister Shibu Soren.

   

Gujarat Chief Minister Narendra Modi sought the allocation of a particular coal block for a power project being implemented by KSK Mahanadi Power Company Limited in Chhattisgarh, and another for a bunch of mines to be allocated to Gujarat Mineral Development Corporation.

   

The Chhattisgarh plant was to supply power to Gujarat after meeting the requirements of its home state, which is why Modi was interested.

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