Govt vows to end coal mafia

I will do everything to weed out the evil, says Coal Minister Sriprakash Jaiswal

PTI | May 25, 2010


Sriprakash Jaiswal
Sriprakash Jaiswal

The government today vowed to crack down on coal mafia, which according to some estimates consists of at least 10,000 groups.

"Unfortunately, the coal producing areas are affected by twin problems of naxalism and mafia. Naxal problem is not in my domain. So, I cannot do anything about it. But, I will focus on the other problem. I want to end the mafia (raj)," Coal Minister Sriprakash Jaiswal told PTI.

Mafia, pilferage and theft are eating into productivity and profitability of the coal companies at the cost of the nation, the minister said, adding that eliminating these were his top priority in the second term of UPA-II -- which has completed one year in office.

"I can't say... when I will be able to bring normalcy in the sector," he said pointing out that the sector has been besieged by the evil of crime and mafia for over three decades.

Majority of the coal producing belt in the country is dominated by mafia operations, according to trade unions in the coal sector.

"I will take time to cleanse the system... I don't know how much time it will take... I will do everything to weed the evil out," he said when asked about the impediments created due to a nexus between mafia, officials and politicians.

"At least 10,000 mafia groups operate in the country mostly concentrated in Coal India Ltd collieries and the annual plunder is not less than 5-6 million tonnes causing huge loss to the state exchequer," former MP and trade union leader Jibon Roy said.

India is home to cumulative coal reserves of 267 billion tonnes, the largest in the world, and the fossil fuel accounts for 55 per cent of the country's energy needs.

Andhra Pradesh, Chhattisgarh, Jharkhand and Orissa are the main coal producing states and also happen to be naxal-infested states.

Roy who had been a member of the Standing Committee on Coal and, at present, is the CITU General Secretary alleged the nexus included that of executive from the coal companies, bureaucrats, police and criminals.

Mafia operations are more rampant in CIL subsidiaries like Central Coalfields Ltd, Bharat Coking Coal Ltd, Eastern Coalfields Ltd and SCEL, he said pointing out that the coal mafia virtually ran a parallel administration there.

State-owned CIL, which accounts for over 80 per cent of the domestic coal production through its seven subsidiaries, marginally missed its output target of 435 million tonnes in 2009-10.

Previous copy:

Have no say on naxalism; will target mafia: Jaiswal

New Delhi, May 25 (PTI) Pained that India's rich coal belt was roiled by naxalism and mafia, Coal Minister Sriprakash Jaiswal today said he had no say on tackling naxalism, but vowed to eliminate mafia.

"Unfortunately, the coal producing areas are affected by twin problems of naxalism and mafia. Naxal problem is not in my domain. So, I cannot do anything about it. But, I will focus on the other problem. I want to end the mafia (raj)," he told PTI.

Mafia, pilferage and theft are eating into productivity and profitability of the coal companies at the cost of the nation, the minister said, adding that eliminating these were his top priority in the second term of UPA-II - which has completed one year in office.

"I can't say... when I will be able to bring normalcy in the sector" he said pointing out that the sector has been besieged by the evil of crime and mafia for over three decades.

"I will take time to cleanse the system... I don't know how much time it will take... I will do everything to weed the evil out," he said when asked about the impediments created due to a nexus between mafia, officials and politicians.

Majority of the coal producing belt in the country is dominated by mafia operations, according to trade unions in the coal sector.

"At least 10,000 mafia groups operate in the country mostly concentrating in Coal India Ltd collieries and the annual plunder is not less than 5-6 million tonnes causing huge loss to the state exchequer," former MP and trade union leader Jibon Roy said.

India is home to cumulative coal reserves of 267 billion tonnes, the largest in the world, and the fossil fuel accounts for 55 per cent of the country's energy needs.

Andhra Pradesh, Chhattisgarh, Jharkhand and Orissa are the main coal producing states and also happen to be naxal-infested states.

Roy who had been a member of the Standing Committee on Coal and, at present, is the CITU General Secretary alleged the nexus included that of executive from the coal companies, bureaucrats, police and criminals.

Mafia operations are more rampant in CIL subsidiaries like Central Coalfields Ltd, Bharat Coking Coal Ltd, Eastern Coalfields Ltd and SCEL, he said pointing out that the coal mafia virtually ran a parallel administration there.

State-owned CIL, which accounts for over 80 per cent of the domestic coal production through its seven subsidiaries, marginally missed its output target of 435 million tonnes in 2009-10. .

The issue of coal pilferage is also being probed by the Central Bureau of Investigation and other agencies.

The CBI has conducted a nationwide special drive against large-scale pilferage and irregularities in public sector coal companies from January 18 to January 25 and unearthed misappropriation and loss to the tune of over Rs 10 crore to various public sector coal companies.

Besides cleansing the mafia, Jaiswal said his ministry's priority will be to bring out more reforms in the sector.

"Apart from Coal India's proposed disinvestment, we are going to shortly appoint a Coal Regulator to monitor various issues including pricing of coal. Also, we are working to introduce competitive bidding for allocation of coal blocks for captive use," Jaiswal said.

The government is in the process of divesting 10 per cent stake in 'Navratna' CIL in the current fiscal, expecting to raise up to Rs 12,000 crore.

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