Few days back, the report of the Comptroller and Auditor General (CAG) of Performance Audit of Allocation of Coal Blocks was tabled in the Parliament. The CAG has reported that the Government ought to have allocated the coal blocks by competitive bidding. The Government followed a method that lacked transparency. CAG estimated the loss to the exchequer to the tune of Rs. 1.86 lakh crore due to the method followed by the Government.
One is not sure whether the action of the Government was the result of any corrupt practice and `mota maal’ received by the ruling party as alleged by the opposition or a mere impropriety or a decision taken with national interests in mind.
Since the Report was tabled in the Parliament, the opposition has not permitted the Parliament to function and has been demanding the resignation of the Prime Minister. Not permitting the Parliament to function is becoming a regular affair and does not augur well for the democracy. Both, the opposition and the ruling party members, are airing their views on the electronic media. The debate ought to happen on the floor of the Parliament; that is the right forum. The opposition is being irresponsible. They would be performing their duty better, if they take the Government to task on the floor of the Parliament.
The Government has been defending the allocation of the coal blocks by putting up several arguments, most of them rather illogical and difficult to digest.
The Prime Minister, while accepting the responsibility for the decision, has stated that the conclusions of the CAG are disputable. The Minister of Corporate Affairs (holding additional charge of Ministry of Power) commented that the CAG Report has been made without proper study and that the things that the CAG has come out with are all speculative and presumptive. He mentioned that the Report will precipitate the policy paralysis in the Government.
The Finance Minister reportedly said that there was zero loss due to allocation of the coal blocks (a defence taken even when 2G scam surfaced). The Minister denied having ever said this. Now his view is that, since mining had not started at any of the coal blocks except one and the coal was still buried in the Mother Earth, no loss had occurred. Does the Minister agree that there is loss, but it will start accruing only when the mining of coal starts? Is it his case that there is no issue at this point of time since loss will accrue in future? Will the Minister accept if an assessing officer were to assess a higher loss and argue that question of loss to the revenue will arise, only if and when the assessee makes profit and claims a set off?
The Minister of Coal slammed the CAG Report on various grounds including the methodology of calculating the loss. The spokesperson for the ruling party at one stage even challenged the jurisdiction of the CAG in making the Report. The Minister of Human Resources Development and the Minister of Law have also joined the bandwagon trying to discredit the Report.
While accepting the proposition that every decision, report and the functioning of any constitutional authority should be open for reasonable criticism, the kind of frontal attack from the ruling party on the CAG and his Report is rather unfortunate and uncalled for. The CAG is a constitutional authority (the Supreme Audit Institution of India) with a right and duty to interrogate the Government on its performance as well as compliance. Each report must be given serious consideration and deliberated upon and discussed at appropriate forums. Neither is the main opposition party justified in not letting the Parliament function nor is the ruling party right in rubbishing the Reports of a constitutional authority on flimsy grounds.
The Nation has witnessed in the recent times two instances, where allocation of natural resources made by the Government has come under attack. The Supreme Court, in the proceedings relating to 2G scam, has directed that national natural resources should be allocated based on competitive bidding. While this may be the most transparent method of allocation of the resources, it has many repercussions. In a competitive bidding, the prices of the resources will bring in more revenue to the national exchequer, but it will impact the pricing of the products and services offered to the public using those high-priced resources. Price of coal will directly impact the prices of power, steel and cement. While the rates for the power are fixed by the Regulatory Commissions, prices of steel and cement are not regulated. Are we ready for prices that are fully market-driven in all sectors? These are complex questions, these can be handled if the Government and bureaucrats work with honesty and diligence and develop transparent yet an efficient way in consultation with all stakeholders.
We talk about high growth rate, that the coming decades will be that of India, India will be a superpower. Are we only fooling ourselves? Can India really progress unless the system is cleansed of corruption and inefficiency. Most of us want to be optimistic. But when we look at the situation around us in the present times, pessimism sets in. Unless we change our act quickly as a nation, we will lose the opportunity when there is a turnaround in the world economy.
Sanjeev Pandit
Editor
