Economy :
- An expert committee under former cabinet secretary BK Chaturbedi is set us for restructuring of HAL board
- Am Inter-ministerial panel (IMG) on coal blocks has recommended de-allocation of 8 coal block, that were allotted to PSUs, because of non-utilization. earlier, it had recommendation same in case of 13 coal blocks allotted to private companies
- The blocks are being deallocated because these were not developed within the stipulated timeframe and no satisfactory explanation was given either.
Prelude :
- Govt. allocates coal blocks among industrial houses.
- Aug 17, 2012 : CAG released a performance audit report on 'Allocation of Coal Blocks and Augmentation of Coal Production'.
- Some key findings of the audit report are -
- Govt. did not allocate the coal blocks through competitive bidding process. This resulted in benefit of 1.86 lakh crores (approx.) for the private companies.
The IMG on coal was constituted for periodical review of the allocated coal blocks.
How the whole thing works.
CIL, under the jurisdiction of Coal ministry, produces over 80% of India's coal. It enters into a FSA or Fuel Supply Agreement with the coal consumers. It, then, issues a Letter of Assurance (LoA) stating the commitment to provide a fixed quantity of coal, a promise which CIL has failed on number of occasions.
How the whole thing works.
CIL, under the jurisdiction of Coal ministry, produces over 80% of India's coal. It enters into a FSA or Fuel Supply Agreement with the coal consumers. It, then, issues a Letter of Assurance (LoA) stating the commitment to provide a fixed quantity of coal, a promise which CIL has failed on number of occasions.
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