Recently, the government issued letters de-allocating coal blocks of various companies, based on the recommendations of the  Inter Ministerial Group (IMG).  This post discusses the history behind the de-allocations, the parameters the IMG used while examining the progress of various coal blocks and the action that has been taken by the government. The Comptroller and Auditor General (CAG) released a performance audit report on 'Allocation of Coal Blocks and Augmentation of Coal Production' on August 17, 2012.  Some of the key findings of the Report were:

  • The government failed to conduct competitive bids for the allocation of coal blocks.  This resulted in a benefit of  Rs 1.86 lakh crore (approx.) to private allottees.  The government could have tapped some of this financial benefit by expediting the decision on competitive bidding for allocation of coal blocks.
  • The implementation schedule of a number of coal blocks has been delayed by one to ten years.  This schedule relates to the time frame within which the Mining Plan for the block has to be approved, various clearances have to be submitted, land acquired, etc.
  • From 2005, the Ministry of Coal (MoC) required the allottees to provide bank guarantees which would be encashed if they failed to meet the above mentioned milestones.  The CAG observed that there was a delay in introducing the bank guarantee and linking it with milestones.

The IMG on Coal was constituted for the periodic review of the development of coal blocks and end use plants.  The IMG had requested a status paper from the Coal Controller, MoC.  This has been submitted to the IMG but is not available.  The IMG will decide if private allottees have made substantial progress based on certain parameters.  The parameters used by IMG are:  approval of Mining Plan, status of environment and forest clearance, grant of mining lease and progress made in land acquisition. They are also examining the physical status of End Use Plant (EUP), investment made and the expected date of opening of the mine and commissioning of EUP. The IMG has made the following recommendations:

  • The coal blocks of companies that have not made substantial progress should be de-allocated.  Additionally, they have recommended the deduction of bank guarantee in the cases where the private companies have not reached the milestones as per the time line decided upon.  As of November 22, 2012, the IMG has recommended the de-allocation of the coal blocks listed in Table 1 and the deduction of bank guarantees for the coal blocks in Table 2.
  • Since, the system of bank guarantee was only introduced in March 2005, not all coal blocks had submitted a bank guarantee.  Where a bank guarantee has not been provided but there is substantial progress in meeting the milestones, the IMG may require the allottee to submit a bank guarantee.

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Of the coal blocks that the IMG has recommended for de-allocation, until now the government has accepted the de-allocation of the following: Bramhadih block, Gourangdih, New Patrapara, Chinora block, Warora (Southern Part) block, Lalgarh (North) block, Bhaskarpara block, Dahegaon/Makardhokra-IV block, Gondkhari block and Ramanwara North block.  The government has accepted the deduction of bank guarantees for blocks such as Moitra, Jitpur, Bhaskarpara, Durgapur II/Sariya, Dahegaon/Makardhokra-IV, Marki Mangli II, III and IV, Gondhkari, Lohari, Radhikapur East, Bijahan and Nerad Malegaon. The letters issued by the government de-allocating coal blocks and deducting bank guarantees are available here.

For a detailed summary of the CAG Report, click here.

The Uttarakhand Assembly concluded a two-day session on November 30, 2022.  The session was scheduled to be held over five days.  In this post we look at the legislative business that was carried out in the Assembly, and the state of state legislatures. 

13 Bills were introduced and passed within two days 

As per the Session Agenda, a total of 19 Bills were listed for introduction in the span of two days.  13 of these were listed to be discussed and passed on the second day.  These included the Uttarakhand Protection of Freedom of Religion (Amendment) Bill, 2022, University of Petroleum and Energy Studies (Amendment), Bill, 2022, and the Uttarakhand Anti-Littering and Anti-Spitting (Amendment) Bill, 2022.

The Assembly had proposed to discuss and pass each Bill (barring two) within five minutes (see Figure 1).  Two Bills were allocated 20 minutes each for discussion and passing - the Haridwar Universities Bill, 2022, and the Public Service (Horizontal Reservation for Women) Bill, 2022.  As per news reports, the Assembly passed all 13 Bills within these two days (this excludes the Appropriation Bills).  This raises the question on the amount of scrutiny that these Bills were subject to, and the quality of such laws when the legislature intends to pass them within mere minutes.

Figure 1: Excerpt of Uttarakhand Assembly's November 2022 Session Agenda

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Law making requires deliberation, scrutiny

Our law-making institutions have several tools at their disposal to ensure that before a law is passed, it has been examined thoroughly on various aspects such as constitutionality, clarity, financial and technical capacity of the state to implement provisions, among others.  The Ministry/Department piloting a Bill could share a draft of the Bill for public feedback (pre-legislative scrutiny).  While Bills get introduced, members may raise issues on constitutionality of the proposed law.  Once introduced, Bills could be sent to legislative committees for greater scrutiny.   This allows legislators to deliberate upon individual provisions in depth, understand if there may be constitutional challenges or other issues with any provision.  This also allows experts and affected stakeholders to weigh in on the provisions, highlight issues, and help strengthen the law.  

However, when Bills are introduced and passed within mere minutes, it barely gives legislators the time to go through the provisions and mull over implications, issues, or ways to improve the law for affected parties.  It also raises the question of what the intention of the legislature is when passing laws in a hurry without any discussion.  Often, such poorly thought laws are also challenged in Courts.   

For instance, the Uttarakhand Assembly passed the Uttarakhand Freedom of Religion (Amendment) Bill, 2022 in this session (five minutes had been allocated for the discussion and passing of the Bill).  The 2022 Bill amends the 2018 Act which prohibits forceful religious conversions, and provides that conversion through allurement or marriage will be unlawful.  The Bill has provisions such as requiring an additional notice to be sent to the District Magistrate (DM) for a conversion, and that reconversion to one’s immediate previous religion will not be considered a conversion.  Some of these provisions seem similar to other laws that were passed by states and have been struck down by or have been challenged in Courts.  For example, the Madhya Pradesh High Court while examining the Madhya Pradesh Freedom of Religion Act, 2021 noted that providing a notice to the DM for a conversion of religion violates the right to privacy as the right includes the right to remain silent.  It extends that understanding to the right to decide on one’s faith.  The Himachal Pradesh Freedom of Religion Act, 2006 exempted people who reconvert to their original religion from giving a public notice of such conversion.  The Himachal Pradesh High Court had struck down this provision as discriminatory and violative of the right to equality.  The Court also noted that the right to change one’s belief cannot be taken away for maintaining public order.  

Uttarakhand MLAs may not have had an opportunity to think about how issues flagged by Courts may be addressed in a law that regulates religious conversions. 

Most other state Assemblies also pass Bills without adequate scrutiny

In 2021 44% states passed Bills on the day it was introduced or on the next day.  Between January 2018 and September 2022, the Gujarat Assembly introduced 92 Bills (excluding Appropriation Bills).  91 of these were passed in the same day as their introduction.  In the 2022 Monsoon Session, the Goa Assembly passed 28 Bills in the span of two days.   This is in addition to discussion and voting on budgetary allocation to various government departments.  

Figure 2: Time taken by state legislatures to pass Bills in 2021

Note: The chart above does not include Arunachal Pradesh and Sikkim. A Bill is considered passed within a day if it was passed on the day of introduction or on the next day. For states with bicameral legislatures, bills have to be passed in both Houses. This has been taken into account in the above chart for five states having Legislative Councils, except Bihar (information was not available for Council). 
Sources: Assembly websites, E-Gazette of various states and Right to Information requests; PRS.

Occasionally, the time actually spent deliberating upon a Bill is lesser than the allocated time.   This may be due to disruptions in the House.  The Himachal Pradesh Assembly provides data on the time actually spent discussing Bills.   For example, in the August 2022 Session, it spent an average of 12 minutes to discuss and pass 10 Bills.  However, the Uttarakhand Assembly allocated only five minutes to discuss each Bill in its November 2022 Session.  This indicates the lack of intent of certain state legislatures to improve their functioning.

In the case of Parliament, a significant portion of scrutiny is also carried out by the Department Related Standing Committees, even when Parliament is not in session.  In the 14th Lok Sabha (LS), 60% of the Bills introduced were sent to Committees for detailed examination, and in the 15th LS, 71% were sent.  These figures have reduced recently – in the 16th LS 27% of the Bills were sent to Committees, and so far in the 17th LS, 13% have been sent.  However, across states, sending Bills to Committees for detailed examination is often the exception than the norm.  In 2021, less than 10% of the Bills were sent to Committees.  None of the Bills passed by the Uttarakhand Assembly had been examined by a committee.   States that are an exception here include Kerala which has 14 subject Committees, and Bills are regularly sent to these for examination.  However, these Committees are headed by their respective Ministers, which reduces the scope of independent scrutiny that may be undertaken.