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Haul over the coal

Haul over the coal

The NDA II government has been taking strong action against political bigwigs, bureaucrats and business leaders on charges of corruption. The conviction of the former Coal Secretary, H C Gupta to a two year jail term by a special court for corruption in allotting a coal block to a private company has, understandably, been protested by the IAS Association. 

An ex-civil servant pointed to the risk of senior bureaucrats not taking decisions on crucial issues on fears of such punishment even for errors of judgment on honest appraisals. I remember the time when ministers and senior civil servants took bold decisions with the objective of economic development. In the 1950s and 1960s R Venkataraman, as Minister of Industry, Tamil Nadu, encouraged the state industrial development corporations to obtain licences and to offer these to  prospective entrepreneurs. 

Several of the civil servants even took bold to differ with the minister. I cite an instance of K P Geethakrishnan as TN Industry Secretary and K Venkatesan as Finance Secretary resisting the direction of Chief Minister MGR to clear the proposal to set up the bagasse- based Tamil Nadu Newsprint and Papers Ltd. They pointed to the risk involved in the state committing over Rs 250 crore on a single project based on unproven technology. MGR had to transfer these out of their posts to get the project cleared!

Dozens of projects cleared in the joint sector by the state development corporations failed causing considerable losses. But neither the civil servants nor the political leadership were blamed for these. Of course, times were different: the level of honesty of the politicians and the bureaucrats across the board was pretty high and integrity beyond reproach. 

The coal allocation case is different. Persons totally unconnected with the coal sector jumped into the fray, eg. Minister S Jagatrakshakan applied for such a licence for a company registered in Puducherry. We also had earlier the instance of the property developer, Unitech, successfully bidding for a telecom licence and later selling it at a huge profit to Nortel. There is the responsibility on the part of senior bureaucrats to exercise due caution on such speculative bidders. In the case of the coal scam, such diligent scrutiny seems to be missing and bureaucracy at the top seems to have failed in the whole exercise resulting in a scam of gargantuan proportions.


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