COAL SCAMS IN INDIA

Presentation by
Anil kumar (leader)
Suneetha (deputy leader)
Avinash
Vineetha
Vijusha
Murali Krishna
Jagadeesh
Satish
Ram charan
Rakesh
Suresh
Dinesh

DREAM KILLERS

THE COAL SCAM

What it is!
Major scams in India
Nation gain?
Coal allocations in India
The people responsible
What can we infer?

BASIC ISSUE?

Coal allocation scam is a political

scandal in India
The comptroller and auditor general of
India (CAG) office accused the
government of India of allocating coal
blocks

Was brought to light in March 2012

185,591 crores

These are some of the major scams that took place

in India in the recent past

How much is the nation gain?

Which blocks to choose???

Started examining 75 coal blocks
Blocks were classified into 3 groups:
Opencast
Underground
Mixed(combined of first two)
Excluded Underground Blocks because:
Joint Ventures between private parties & state run
companies
UMPPs(Ultra Mega Power Projects)
Left with 57 blocks

How much coal can be mined ?

Mining Estimation of 57 blocks
Total geological reserves estimation 12.1 billion
tonnes
Extractable Reserves
CAG Used Benchmarks:
73% of the total reserves of Opencast Mines
37% of the total reserves of Mixed Mines.

Thus, total extractable reserves 6.28 billion

Coal allocations

Firms eligible for coal allocations

Historically, the economy of India could be characterized as broadly
socialist, with the government directing large sectors of the
economy through a series of Five-year Plans.

In keeping with this centralized approach, between 1972 and 1976,

India nationalized its coal mining industry, with the state-owned
companies Coal India Limited(CIL) and Singareni Collieries
Company (SSCL) being responsible for coal production.

Coal allocation process

Screening Committee for screening proposals
The Committee was composed of government officials from the Ministry of Coal,
the Ministry of Railways, and the relevant state government.
A number of coal blocks, which were not in the production plan of CIL and SSCL,
were identified in consultation with CIL/SSCL .
Companies could apply for an allocation from among these blocks. If they were
successful, they would receive the geological report that had been prepared by the
government.

On march 2012,the times of India, broke the story

The government has extended "undue benefits", totalling a mindboggling Rs 10.67 lakh crore, to commercial entities.
by giving them 155 coal acreages without auction .
The beneficiaries include some 100 private companies, as well as
some public sector units, in industries such as power, steel and
cement.

Asked for investigation

NGO Lawyer- Prashant Bhushan
Another Lawyer Manohar Lal Sharma
Justice RM Lodha

CBI INVESTIGATION
On 31 May 2012, Central Vigilance Commission(CVC) directed a CBI enquiry.
Which claimed the figure to be around 1,060,000 crore. It is called by the media
as the Mother of all Scams.
Discussion about the issue was placed in the Parliament on 26th Aug, 2012 by the
Prime Minister Manmohan Singh with wide protests from the opposition.
On 29 May 2012, Prime Minister Manmohan Singh offered to give up his public
life.

Biggest beneficiaries
AJAY SANCHETI

NAVEEN JINDAL

Private Sector
company

Gains

Public Sector

33,060

NTPC limited

35,024

26,320

TNEB & MSMCL

26,584

21,226

NTPC

22,301

15,967

JSEB & BSMDC

18,648

15,633

MMTC

18,628

Gains

company

Strategic Energy
Tech System (TataSasol)
Electro Steel
Casting
Jindal Steel and
Power
Bhushan Power &
Steel Ltd & others
Ram Swarup &
others

JSPL & Gagan

Sponge Iron Ltd
MCL/JSW/JPL &
others
Tata Steel Ltd

12,767

WBPDCL

17,358

10,419

CMDC

16,498

7,161

MSEB & GSECL

15,335

7,023

JSMDCL

11,988

6,851

MPSMCL

9,9

Chhattisgarh
Captive Coal Co
Ltd
CESC Ltd & J&S
Infrastructure

What can we infer?

A lack of transparent process and lack of speedy
formulation and implementation of a transparent
methodology
Let us hope that we soon have a more strong rules for
coal block allocation policy.
We also hope that those blocks on which production
has been delayed will begin there production soon

Our views:
After the study we have made about the coal scam ,it came to our knowledge that:
There are many other politicians and business man who are involved in the scam and who's
names didnt came into light till date .
The main reason behind this is the weak law that is supressing in our country from the
beginning .
There are many people who are in high cadar are making use of the weak law that is existing in
our country.
The only way by which these scams and corruption can be reduced is
law should be strengthen and should be made mare strict
corruption should be eliminated in the early stages ,so that these scams wont take

place

Thank you