Coalgate

History/Background
 1774
East India Company started coal mining in the year 1774, in the Raniganj
Coalfield, along the bank of river Damodar.
 1853
With the introduction of Steam Engine in India, the consumption of coal rose
 1945
Singareni Collieries Company Ltd. (SCCL) started coal mining
 1947
Post-independence, India, under first five year plan produced 33 million tonnes
(mts) of coal
 1956
Government setup National Coal Development Corporation (NCDC), having
collieries under Indian railway as the main member was the first plan by Indian
government towards developing Coal Industries. SCCL also became government
company in the same year, with Andhra Pradesh controlling it
 The Coal Mines (Nationalization) Act, 1973
This act came during Smt. Indira Gandhi’s reign, it nationalised all the Coal
blocks of India. Coal India Limited became the only company which could mine
and sell coal.
 July 1992- Screening committee
With an idea to boost the steel and power industry, government planned to give
captive coal blocks to large companies. Here, companies could mine the
allocated coal blocks but were not allowed to sell coals. Blocks were allocated in
the first come first serve basis.
 1993-2005
70 coal fields were allocated to such companies
 2006
53 coal fields were allocated
 2007
52 coal fields were allocated
 2008
24 coal fields were allocated
 2009
16 coal fields were allocated
 2010
1 coal field was allocated
 March 2012
Comptroller and Auditor General of India (CAG) drafted a report stating that the
allotted companies made a windfall gains of ₹ 10.7 trillion (₹ 10.7 lakh crores)
because of the allocation process followed by the government.
Report also said that although government had the legal authority to auction the
coal blocks for captive use by 2006 but it chose not to do so.
 March-October 2012
It was alleged that many of the politicians and industrialists were benefited due to
the coal block allocation process.
 31 May 2012
Central Vigilance Commission ordered a probe by Central Bureau of
Investigation. Income tax department also started its investigation
 June 2012
Inter-ministerial panel was formed by Coal ministry to investigate allocation
process
 17 Aug 2012
CAG report was presented in Parliament. The loss to the government was
mentioned in this final report was 1.86 lakh crore (initial draft showed a loss of
10.7 lakh crore)
 September 2012
Supreme Court started monitoring the CBI proceeding on the case
 March 2013
CBI was instructed by Supreme Court, not to share the report with the
government
 23April 2013
Parliament Standing Committee stated that all the allocations between 1993 to
2008 were arbitrary and that those involved should be examined
 June 2013- October 2013
FIR filed by CBI against Naveen Jindal, Desari Narayana Rao, Kumar Mangalam
Birla and former coal secretary P.C Prakash
 July 2014
A special CBI Court was set up by Supreme Court for the coal allocation case
 September 2014
Supreme Court cancelled 214 out of 218 allocated coal blocks. Supreme court-
imposed penalty of rupees 290/ tonne of the extracted coal since their allocation.