Tuesday, 23 September 2014

A timeline of India's troubled coal sector - Hindustan Times

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The Supreme Court ruled on August 25 that all coal block allocations made by the government between 1993 and 2009 were illegal. Here is a look at the key events in the sector ahead of the SC ruling on Wednesday.



1972-76



  • Coal India Limited (CIL) set up as a state-owned company

  • Coal Mines (Nationalisation) Amendment Act, 1976 enacted

  • Mining leases to all private firms, except iron steel producers, terminated

  • Iron and steel producers allowed to carry on coal mining for captive use


1992



  • Coal ministry sets up Screening Committee to consider coal mining applications from private companies


1993



  • Coal Mines (Nationalisation) Act, 1976 amended to allow power, in addition to iron and steel, companies to carry out captive coal mining

  • Screening committee guidelines give preference to large projects of power and steel companies

  • Blocks allocated on a first-come-first-served basis


1996



  • Cement sector allowed carry out captive coal mining


2005



  • Expert committee under TL Sankar, chairman, Energy Group Administrative Staff College, submits coal sector reform roadmap to Prime Minister


2006



  • Government allows 100% foreign direct investment (FDI) in captive coal mining in power, iron and steel, and cement sectors


August 2012



  • Comptroller and Auditor General (CAG) report tabled in Parliament estimating that by not auctioning coal blocks, the government may have handed out a windfall of about Rs. 1.86 lakh crore to private power companies

  • BJP steps up pressure on the government demanding the PM’s resignation

  • PM Manmohan Singh states CAG’s observations are clearly disputable.


September 2012



  • As an inter-ministerial group (IMG) begins review of coal blocks hit by delays

  • CBI carries out raids across 10 cities and books five firms

  • SC begins monitoring the CBI probe into the coal field allocations


March 2013



  • SC asks CBI director Ranjit Sinha not to share details of its investigation with the government.


April 2013



  • Parliamentary standing committee says allocations between 1993 and 2008 done arbitrarily

  • CBI director Ranjit Sinha admits that the investigation report was shared with the then law minister Ashwani Kumar


May 2013



  • Ashwani Kumar resigns


April 2014



  • Former Coal Secretary PC Parakh says in his book that the authority of PM Manmohan Singh was undermined by former coal ministers Sibu Soren and Dasari Narayan Rao


July 2014



  • SC sets up a special CBI court to try all coal field allocation cases.


August 2014



  • SC says all coal blocks since have been allocated illegally and arbitrarily since 1993


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