NEW DELHI, Aug 27:
Refusing to be on the back foot on coal block allocation, Prime Minister Manmohan Singh today rejected the CAG’s observations as “misleading” and “flawed” and blamed Opposition parties for thwarting his Government’s efforts to bring a policy of competitive bidding.
Speaking inside Parliament as well as outside, he took “full responsibility” for the decisions taken by the Coal Ministry whose charge he directly held for some time and asserted that at “any allegation of impropriety is without any basis and unsupported by facts”.
He attacked BJP for disrupting Parliament and dared it to have a debate in the House to let the country judge the truth while declaring that “we have a very strong and credible case” as CAG’s “observations” are “clearly disputable”.
In both Houses, BJP chanted demands for his resignation as Singh rose to speak. As a result, he read out a few portions of his four-page statement before laying it in Lok Sabha and Rajya Sabha which were repeatedly adjourned.
Conscious that the CAG reports are normally discussed in Parliament’s Public Accounts Committee where the ministry concerned responds, he said he was departing from this established procedure “because of the nature of the allegations that are being made and because I was holding the charge of Coal Minister for a part of the time covered by the report.”
Responding point-by-point to the observations of the CAG which had pegged the loss at Rs 1.86 lakh crore, he said even if the government auditor’s contention that benefits accrued to private companies were accepted, “their computations can be questioned on a number of technical points.”
He asserted that aggregating the “purported gains” to private parties “merely on the basis of the average production costs and sale price of CIL (Coal India Limited) could be highly misleading”.
The Prime Minister termed as “flawed” the premise of the CAG that the competitive bidding could have been introduced in 2006 by amending the existing administrative instructions, saying it is “based on a selective reading” of opinions given by the Department of Legal Affairs.
As coal blocks were allocated to private companies only for captive purposes for specified end-uses, it would not be appropriate to link the allocated blocks to the price of coal set by CIL, he said.
Facing BJP demand for his resignation, Singh sought to corner the Opposition saying the policy of allocating coal blocks without competitive bidding existed since 1993 and previous Governments also allocated “precisely in the manner that the CAG has criticised”.
He also said major coal and ignite bearing states like West Bengal, Chhattisgarh, Jharkhand, Orissa and Rajasthan “ruled by Opposition parties” were “strongly opposed” to a switch over to competitive bidding process.
On the charge of delay in bringing the Coal Mines Nationalisation (Amendment) Bill, 2000, to facilitate commercial mining by private companies, he said it was pending in Parliament for a long time owing to “stiff opposition from the stakeholders” and Government wanted broader consultations and consensus.
Singh said these State Governments felt that a switch over would increase the cost of coal, adversely impact value addition and development of industries in their areas and dilute their prerogative in the selection of leases.
He said the issue was “contentious” and the proposed change to competitive bidding required consensus building among various stakeholders with divergent views, which is inherent in the legislative process.
Citing instances, he said the then BJP Chief Minister of Rajasthan Vasundhara Raje had written to him in April 2005 opposing competitive bidding and arguing that it was against the spirit of the Sarkaria Commission recommendations.
The Prime Minister named another BJP Chief Minister Raman Singh (Chhattisgarh) saying he had written to him in June 2005 seeking continuation of the extant policy of coal block allocation.
He said the Chhattisgarh Chief Minister had requested that any change in coal policy be made after arriving at a consensus between the Central Government and the states.
“The State Governments of West Bengal (Left) and Orissa (BJD-led) also wrote formally opposing a change to the system of competitive bidding,” Singh said.
The coal block allocation could not be held back till consensus was arrived at as it could affect GDP growth, the Prime Minister said.
“It is unfortunate that the CAG has not taken these aspects into account,” he said.
Singh said the Government has initiated action to cancel the allocations of allottees who did not take adequate follow-up action to commence production and promised “due action against wrong doers” on the basis of the on-going CBI investigations into the allegations of malpractices.
He said it has always been the intention of the Government to augment coal production by making available coal blocks for captive mining through transparent processes and guidelines, which fully took into account the legitimate concerns of all stakeholders, including the State Governments.
He said the Government had initiated a proposal to introduce competitive bidding by formulating appropriate rules but coal and ignite bearing states voiced their opposition to the proposed switch over in a meeting convened by the PMO on July 25, 2005.
It was, therefore, decided in the meeting to “continue with the allocation of coal blocks through the extant Screening Committee procedure till the new competitive bidding procedure became operational.
“This was a collective decision of the Centre and the State Governments concerned,” Singh said.
Often at the receiving end of opposition’s silence jibe, Prime Minister Dr Manmohan Singh today invoked an Urdu couplet to hit back at his critics.
“Hazaron jawabo se achchi hai khamoshi meri, na jaane kitne sawalo ki aabru rakhe. (My silence is better than a thousand answers, it keeps intact the honour of innumerable questions),” Singh said reciting the couplet, asserting this has been his “general attitude”.
“It has been my general practice not to respond to motivated criticism directed personally at me,” he added.
But the Prime Minister’s way of sending a message across on his silence did not convince BJP leader and Leader of the Opposition in the Lok Sabha Sushma Swaraj.
Taking a jibe at the Prime Minister, Sushma said the questions were so pointed that he would have been embarrassed in answering them and that was why he chose to remain silent.
“Really the questions were so harsh and straightforward that by anwsering them he would have embarrassed himself and that’s why you (Prime Minister) preferred to keep silent,” she added.
Meanwhile, Government today rejected BJP’s allegation of bribes having been paid to Congress party in coal block allocations and ruled out bringing a Confidence Motion in Lok Sabha or sine die adjournment of Parliament.
At a hurriedly-called press conference to rebut BJP’s charges on the coal block allocation issue, Finance Minister P Chidambaram termed as “unfortunate” use of phrase ‘mota maal’ (hefty sums for Congress party) by Leader of Opposition in Lok Sabha Sushma Swaraj and said BJP should avoid such words.
“I outright reject (the allegations),” he said when asked to comment on BJP’s allegation that Congress received bribes in coal block allocation.
“It was most unfortunate and unbecoming of the Leader of Opposition to make sweeping allegations,” he said.
The Minister appealed to Opposition, especially BJP, to come to Parliament and discuss the statement made by Prime Minister Dr Manmohan Singh this morning.
“The Prime Minister has made a long and detailed statement which deserves to be debated. If there is anyone who has serious differences, he must seize the opportunity of Prime Minister’s offer of debate,” he said.
Chidambaram also rejected criticism of CAG’s findings in the Prime Minister’s statement, saying fair criticism of Constitutional authorities is permitted.
To a question, he ruled out Government bringing a Confidence Motion in Lok Sabha, saying the “Government enjoys confidence of Parliament and the Government enjoys the confidence of the people.”
“There is no reason for us to seek a Vote of Confidence,” he said.
Information and Broadcasting Minister Ambika Soni, who also addressed the press conference, ruled out sine die adjournment of Parliament in the face of BJP’s obstructionist tactics.
“There is no such thinking on the part of Government. This session will go on till September 7,” she said.
Maintaining that the place for discussion was not outside, Chidambaram told the Leaders of Opposition in both houses that the best place would be Parliament where Government and the Prime Minister will respond.
“That alone advances Parliamentary democracy,” he said adding that every day that passes without debate was a slap on the face of democracy.
On the allegations of bribe, he said such phrase should be avoided in a civilised debate.
“If you can accuse the UPA Government of ‘mota maal’, then what about the allocations made between May 1998 and May 2004 (during NDA rule). They should avoid sweeping allegations,” he said questioning the allocations made during NDA rule between May 1998 and May 2004.
Chidambaram said the Prime Minister’s statement was absolutely clear, self contained, well drafted, carefully worded and that deserved careful study.
“Unfortunately, the Leaders of the Opposition have refused to join the debate in Parliament,” he said.
Rejecting BJP’s contention that a debate would “dilute” the issue, Chidambaram wondered “how can a debate dilute anything. This is an extraordinary argument. A debate can only enlighten and clarify matters.”
To a question on how long the deadlock would continue, he said that the Government would report to Parliament everyday and try to participate in the debate.
Asked whether the logjam meant that no reforms measures would be passed during the current session, Chidambaram said he sincerely hoped that the pressure of their own allies, constituents and well-meaning critics would persuade the BJP to return to Parliament and participate in the debate.”
Unfazed by the Prime Minister’s 32-point statement in Parliament and dwindling support from other parties, BJP today said it will not retreat from its demand for Manmohan Singh’s resignation and alleged that he delayed coal block auctions for undue benefits to Congress.
Singh’s appeal to BJP to agree to a debate on the coal block allegations fell on deaf ears with the main opposition launching a direct attack on the PM. BJP claimed it has the support of NDA allies and parties like AIADMK and will continue to press for the PM’s resignation on moral grounds.
“Congress has got a fat sum from coal block allocation, that is why this delay (in amending the laws) was caused. My charge is that huge revenue was generated but it did not go to the government and went to the Congress party,” Leader of Opposition in Lok Sabha Sushma Swaraj told reporters.
Slamming Singh’s statement disputing CAG’s findings, Leader of Opposition in Rajya Sabha Arun Jaitley said it was an assault on constitutionalism and constitutional authority.
BJP demanded cancellation of all 142 coal blocks allotted since 2006 and insisted that these be auctioned.
“If an impartial probe is conducted, I can say with full responsibility as Leader of Opposition that Congress will be in the dock along with the Government,” Swaraj said.
Asked if BJP is alone on this issue as even its allies have indicated that they would like a debate in Parliament on the issue, Jaitley said, “We don’t stand alone. And on corruption even if we have to fight alone it would be majestic isolation. The support of the people is with us.”
Swaraj claimed allies SAD, JD(U) and Shiv Sena were with the BJP and even parties like AIADMK were supporting NDA on the demand for PM’s resignation.
BJP said as minister in-charge of coal ministry, PM was morally responsible and he should step down.
“We charge that the moral responsibility for this lies with the Prime Minister. He should accept it and resign,” Swaraj said.
The main opposition said it remains firm on its demand even after Singh’s statement and there is no question of retreating from its position.
BJP alleged that by disputing CAG’s observations on the coal block allocation anomalies Singh has attacked the constitutional authority.
“UPA tries to subvert constitutional authority and when it does not succeed it attacks the authority…. It is a defiance of ethics in governance and polity,” Jaitley said.
BJP charged that Singh is directly responsible for the delay in bringing about an amendment to the Mines and Minerals Act to make auctions mandatory in coal allocations as bringing “revenue” to Congress party was the aim.
“If the purpose behind allocation of coal mines was saving time, getting more GDP growth, and power generation it has been defeated… Mining has been negligible in these 142 mines. Between 2004 to 2012, their contribution to GDP growth has been nil,” Jaitley said.
He added that if the Government really felt competitive bidding was needed it should have brought an ordinance.
He alleged that there seems to be no basis on which these block allocations were made. Moreover, while only 70 coal blocks were allotted between 1994 and 2006- and most of these were for public sector units- 142 blocks have been allotted from 2006 till today.
“Besides loss to the exchequer, the rational for cancellation of these 142 blocks is that nobody should be allowed to enjoy the fruits of a corrupt allotment at the cost of public exchequer,” Jaitley said.
Jaitley alleged that though Singh began his statement by saying he takes full responsibility for the coal block allocations, “step by step” he transferred this responsibility on others.
“The first responsibility he puts is on the federal structure saying law-making is time consuming. According to the Prime Minister, parliamentary democracy is responsible for the delay. As PM, his priority seems to be that GDP growth should not suffer,” Jaitley said.
He further alleged that the law ministry is also responsible for the delay as it kept changing its stand.
The BJP leader charged that PM has said loss figures are wrong as there are mistakes in the calculations made by CAG.
“It does not behove a Prime Minister to blame a Constitutional institution (CAG),” Jaitley said.
Defending the demand for cancellation of coal block allocations and auctioning of the same, Swaraj said BJP stand on 2G spectrum allocations was vindicated by the recent re-auction, which had a base price of Rs 14,000 Crore.
Swaraj also mocked at Singh’s use of poetry, saying when a person feels that by speaking out his honour will be destroyed he should keep silent.
“By answering our questions the Prime Minister would have only been exposed and lost his honour,” she said.
Earlier, the stalemate in Parliament over coal block allocation issue entered the second week today paralysing the Lok Sabha and the Rajya Sabha despite Prime Minister Dr Manmohan Singh’s statement as a determined BJP stuck to its demand for his resignation.
Turmoil over the issue which wiped off four days of business last week continued today with both the Houses witnessing repeated adjournments before calling off the proceedings for the day.
The Lok Sabha had to be adjourned till noon first and later till 2 pm, while the Rajya Sabha first adjourned till noon, then till 12:30 pm. And again till 2:00 pm.
Both the Houses met at 2 pm Only to be adjourned for the day minutes later as BJP members kept up the pressure.
As soon as the Lok Sabha met, BJP members trooped into the Well raising slogans against the Prime Minister after Speaker Meira Kumar’s obituary reference to film actor A K Hangal.
“Pradhan Mantri Istifa do (Prime Minister should resign),” the BJP members chanted in the Well. Amid din, Kumar took up the Question Hour but nothing could be heard.
Only BJP members were in the Well and those of allies – JD-U and Shiv Sena – were seen raising slogans from their seats. Another BJP ally Akali Dal did not participate in the ruckus. Members of SP, BSP, RJD and Left parties were also seated.
As the din continued, the Speaker adjourned the House till noon.
At the time of adjournment, RJD leader Lalu Prasad was heard saying that BJP members should be removed from the House as a majority was keen on functioning of the House.
“Bahar kariye inko, bahar kariye … Do tihai log chahte hai ki House chale (Remove them, two-thirds of the members want House to run)” Prasad said pointing towards BJP members.
In the Rajya Sabha, BJP-led NDA members were up on their feet shortly after it mourned the passing away of former member Chowdhary Ram Sewak and congratulated Indian cricket team for winning U-19 one-day international world cup.
As Chairman Hamid Ansari took up the first listed question, they shouted, “Pradhan Mantri istifa do (Prime Minister should resign).”
“Please sit down. Let the Question Hour proceed,” Ansari pleaded with the members. But as slogan shouting continued unabated, he adjourned the House till noon. (PTI)
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