Will coal importers decide next DVC chairman?

Even as the current account deficit (CAD) has been wreaking havoc on Indian economy, more than Rs 1 lakh crore worth of premium foreign exchange has gone out of the country annually by importing coal from abroad, and not enough initiative has been taken to either increase domestic production or remove bottlenecks for the same, even after allotting them prime coal mines for development.

According to industry experts, this is a deliberate ploy because coal import generates huge kick backs for multiple interest groups, including the state and central level PSU top brass.  In most cases, there are at least four major agents who are playing this game, while in some, two other PSUs, MMTC and STC, which come under ministry of commerce, are also involved. In the process, enough kickback gets generated because the middleman usually imports lower calorific value coal, which gets passed on at a higher calorific value. This facilitates everyone to get larger profits to share. Independent experts certify this massive scam happens year after year.

Incidentally, in many cases, the power secretaries of respective state governments are also not being deprived of this largesse since they help by not taking enough initiatives to remove the bottlenecks of captive coal block production.

The biggest coal importer in this country is Gautam Adani, whose relationship with a few powerful union ministers has made investigating agencies overlook such activities very often. A joint secretary, posted in the power ministry, in a close connection with a central minister, helps him at all times.

There are nearly eight candidates in the fray for the post of chairman in DVC which includes Coal India’s Director, R Mohan Das, ADG West Bengal Police, Shivaji Ghosh, Jharkhand State Electricity Board Chairman, SN Verma, along with several others. Whether the coal importers’ lobby has its way is to be seen in this selection.