The Comptroller and Auditor General (CAG) released a Performance Audit of Allocation of Coal Blocks and Augmentation of Coal Production, on August 17, 2012.  Some of the main findings and recommendations of the report are highlighted below:

  • There were no criteria for allocating coal blocks for captive mining till 1993.  The process of bringing in transparency and objectivity began in January 2004.  However, the process has experienced delays and had yet to materialise as of February 2012.
  • In the intervening period, 194 coal blocks with geological reserves of 44,440 million tonnes were allocated to private and government parties until March 31, 2011.  The report finds that the benefit to private allottees has been estimated at Rs 1.86 lakh crore for Opencast mines.  The report states that the government could have tapped some of this financial benefit by expediting the decision on competitive bidding for allocation of coal blocks.
  • The rate of increase in production of coal by Coal India Limited (CIL) during the 11th Plan period remained below the target set by the Planning Commission.  Capacity addition projects were delayed due to the lack of coordination of government agencies involved in statutory clearances and land acquisition.  There were mismatches in excavation and transportation capacities of mines, and suboptimal use of Heavy Earth Moving Machinery.
  • The CAG recommends that Ministry of Coal (MOC) should work out modalities to implement the procedure of allocation of coal blocks for captive mining through competitive bidding.
  • The CAG recommends that the MOC should constitute an empowered group along the lines of Foreign Investment Promotion Board as a single window mechanism for granting clearances, with representatives from central nodal ministries and state governments.

A one-page summary of the main findings and recommendations can be accessed here.  The full report can be accessed on the CAG website.

Because of the interest in the Women’s Reservation Bill and the Civil Liability for Nuclear Damage Bill, we’ve received a number of queries about the process by which a bill becomes an Act. We have a more comprehensive primer on the subject, but here’s the process in brief: •The ministry drafts a text of the proposed law, which is called a ‘Bill’, after calling comments from other ministries, and even from the public.  The draft is revised to incorporate such inputs and is then vetted by the Law Ministry. It is then presented to the Cabinet for approval. •After the Cabinet approves the Bill, it is introduced in Parliament. In Parliament, it goes through three Readings in both Houses. • During the First Reading the Bill is introduced. The introduction of a Bill may be opposed and the matter may be put to a vote in the House. •After a Bill has been introduced, the Bill may be referred to the concerned Departmentally Related Standing Committee for examination. •The Standing Committee considers the broad objectives and the specific clauses of the Bill referred to it and may invite public comments on a Bill. It then submits its recommendations in the form of a report to Parliament. •In the Second Reading (Consideration), the Bill is scrutinized thoroughly. Each clause of the Bill is discussed and may be accepted, amended or rejected. The government, or any MP, may introduce amendments to the Bill.  However, the government is not bound to accept the Committee’s recommendations. •During the Third Reading (Passing), the House votes on the redrafted Bill. •If the Bill is passed in one House, it is then sent to the other House, where it goes through the second and third readings. •After both Houses of Parliament pass a Bill, it is presented to the President for assent.   He/She has the right to seek information and clarification about the Bill, and may return it to Parliament for reconsideration. (If both Houses pass the Bill again, the President has to assent) • After the President gives assent, the Bill is notified as an Act.