After 2G, BJP confronts government on coal scam

On a day when the 2G scam axe fell on a second Cabinet minister, the BJP reopened its charges of a coal scam against the UPA government. BJP on Thursday released a list of 133 companies to which coal blocks were allotted across the country from 2006 to 2009, alleging that there was a “black gold rush” soon after a bill to convert the method of allocation to open auction was introduced in Parliament.

“The moment the bill was introduced in 2006, to bring transparency into the whole process, there was a sudden mad rush in coal allotments,” BJP spokesperson Prakash Javadekar told reporters here releasing the list of companies. He said that Prime Minister Manmohan Singh was then in-charge of the Coal Ministry.

Javadekar said many of the companies to which the blocks were allotted were not even in the coal business and said that prior to 2006, it was given to only firms which had operational requirements for coal. “Suddenly, from around 3 to 4 blocks allotted per year, the rate of allotments shot up to 20 to 22 annually,” he said.

BJP had raked up the issue around two months ago accusing the government of indulging in irregularities in coal block allotment worth Rs 85,000 crore. The BJP equated its modus operandi with that of 2G scam, alleging that rules were bent and modalities distorted to benefit allottees. It also said many companies sold coal blocks to other companies at a “hefty premium”.