COAL MINISTRY
The reason for coal being one of the hot topics in the Indian economy is that most of the power generation in here is from the coal. Thus, there required the establishment of a separate ministry to handle the operations of the empire of coal. The ministry is developed to ensure the production , allocation and supply of the coal in a systematic way. The production of coal in India has been nationalized in India in the mid 1970s by acquiring the Coal India Limited to meet the requirements of every Indian household. Coal India Limited of West Bengal, is the largest producer of Coal in the world and contributes more than 80% of its produce to India.
In order to know the working of the ministry of coal, it is necessary to have an idea about the Coal India limited. Prior to independence, there were many small coal producing industries spread across the country. But, due to the difficulties faced by them to meet the requirements of the vast growing Indian economy, the Indian government decided on nationalization of Coal sector where in, all the small coal industries were amalgamated in order to form CIL in 1971.
CIL was listed in the stock market in 2011 from when its value started to pile up and was termed the India's most valuable company in terms of market capitalisation. This company guides almost all the coal companies in India and it is in return headed by the ministry of coal.
The major problems faced by CIL accounts for labour unions and environment issues. As it is a government held company,the salaries paid to the employees results to be too low which directly affects the standard of living of the entire labour community which in turn provokes them to go against the administration calling on strikes. The loss caused by the strikes and the terms of labour and management are clearly mentioned in one of my previous blog subjects.
But, the coal gate scam which was revealed to media in 2012 reflects the malfunctioning of the ministry. What is coal gate scam? What has actually happened? Why did there happen a scam under the supervision of the separate ministry? What was the worth of the scam? and so on are the questions raised in one's mind.
Coal gate scam occurred during the period of 1993 to 2012. As the coal blocks under the government control could not make it to the expectations, they were decided to be allocated in the hands of private players in order to maintain them properly. It was a deal in big numbers. The blocks were to be allocated on the basis of competitive bidding but ultimately it got side tracked administering manipulations. The blocks which were supposed to be allocated by the way of competitive bidding were allocated unfairly to the companies not eligible in meeting the terms of the competition. The reports concluded that a loss of about 1.78 lakh crore burdened the government but the expected loss to the exchequer could be considered more than 10 lakh crores.
It is the crevice deserted by the ministry of coal all in all. Indeed, even small failing of the lower lump of officers in chain of command would leave the economy with an unpleasant blow. Presently envision what happens when the top most positions of the service are included in the control. There is more than misfortune to the country. This reveals to us how every hand of the service ought to work with legitimacy and obligation regarding a dream of making India THE BEST.
CIL was listed in the stock market in 2011 from when its value started to pile up and was termed the India's most valuable company in terms of market capitalisation. This company guides almost all the coal companies in India and it is in return headed by the ministry of coal.
The major problems faced by CIL accounts for labour unions and environment issues. As it is a government held company,the salaries paid to the employees results to be too low which directly affects the standard of living of the entire labour community which in turn provokes them to go against the administration calling on strikes. The loss caused by the strikes and the terms of labour and management are clearly mentioned in one of my previous blog subjects.
But, the coal gate scam which was revealed to media in 2012 reflects the malfunctioning of the ministry. What is coal gate scam? What has actually happened? Why did there happen a scam under the supervision of the separate ministry? What was the worth of the scam? and so on are the questions raised in one's mind.
Coal gate scam occurred during the period of 1993 to 2012. As the coal blocks under the government control could not make it to the expectations, they were decided to be allocated in the hands of private players in order to maintain them properly. It was a deal in big numbers. The blocks were to be allocated on the basis of competitive bidding but ultimately it got side tracked administering manipulations. The blocks which were supposed to be allocated by the way of competitive bidding were allocated unfairly to the companies not eligible in meeting the terms of the competition. The reports concluded that a loss of about 1.78 lakh crore burdened the government but the expected loss to the exchequer could be considered more than 10 lakh crores.
It is the crevice deserted by the ministry of coal all in all. Indeed, even small failing of the lower lump of officers in chain of command would leave the economy with an unpleasant blow. Presently envision what happens when the top most positions of the service are included in the control. There is more than misfortune to the country. This reveals to us how every hand of the service ought to work with legitimacy and obligation regarding a dream of making India THE BEST.
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