Auction is the preferred but not the only route for allocation of coal mines, and the Government should not cancel coal blocks just on the basis of a report from the Comptroller and Auditor General (CAG), said Adi Godrej, President of the Confederation of Indian Industry (CII).
“The coal blocks, which were allocated according to due process, should not be cancelled, as any such cancellation will adversely impact business sentiment,” Godrej said, adding the judiciary should only interfere if there is any violation of law.
Godrej was referring to the recent ‘Coalgate scam’ that the CAG says has resulted in a whopping loss of Rs 1.85 lakh crore to the Indian exchequer. He was speaking at a CII event in Mumbai.
“There are several issues which lead to delays at the start of the production in coal blocks. These are related to forest, environment clearances, land acquisition, law and order and the lack of supporting infrastructure, especially in the case of blocks in remote areas,” Godrej said.
These would need to be addressed through a time-bound, single-window mechanism.
Godrej also stressed on the need for several reforms such as implementation of the Goods and Services Tax (GST); FDI in retail, aviation and insurance; reduction in subsidies and a strong tax collection mechanism. He said that CII has been engaging with the Government and political parties in advocacy efforts to push for reforms in critical areas. He said the implementation of GST alone could increase GDP growth by 1–1.5 per cent.
He also said that CII would work in tandem with the Central and State Governments in identifying the gaps in power distribution reforms and chart a roadmap for the way ahead. It will also help facilitate a regulatory framework for procuring power by the States.