Initially case was seeming like usual case of Anti defection but as it took root of the case, it got wider scope to decide few questions of law accordingly, The Raj High Court today framed 13 issues, question of law. The reason behind this case is early Predictions were made that Pilot would join the hands with saffron party , BJP leaders also boosted & welcomed the joining , however, Pilot washed out all predictions & the rebel Congress leader made it clear he would have no truck with the saffron party, the BJP went back into its shell, indicating it preferred prudence to bravado.
On 13th of July, Rajasthan Speaker C P Joshi has issued notices to Sachin Pilot and other rebel Congress MLAs after the party sought their disqualification from the state assembly for the wants of nonjoining of party meeting even after issuance of whip. Now the notice has been challenged before hon’ble Rajasthan High Court stating failure to attend a party meeting or expression of disagreement with certain policies of the party cannot be a ground to disqualify under para (a) or 2(b) of tenth schedule of the Constitution.
Since the Gehlot led Rajasthan Government has majority & the act of rebel congress leader Pilot has not aided to dis- Stabled the government, in such a case does the act of team Pilot fall under the “act against the party”? if yes then right to dissent has no meaning. Because the team Pilot neither voted against the party or has given up their membership. The act of Pilot team seems to be against party policy & not against the party therefore, the friction between right to dissent & Anti defection has taken place.
Right to freedom of speech & expression vs Right to dissent
The question of law rises here in the present case is whether right to dissent fall under the ambit of right to dissent or not, if yes then whether the Tenth schedule violating the Basic Structure of the constitution. Because when we call right to dissent is right to freedom of speech & expression, it would gross violation of art. 19 (1) a of the constitution & when there is violation of any provisions of the fundamental rights would be violating the basic structure of constitution & when any law is against the basic structure of the constitution is deemed to be void.
During the hearing of the Pilot petition Hon’ble Justice Arun Mishra SC observed that voice of dissent can not be suppressed in a democracy.
In Kihota Hollohon Vs Zachilhu and Others, 1992 SCC Supp. (2) 651, the Tenth Schedule was challenged on the ground that, it violates the democratic rights of elected members of Parliament and the Legislatures of the States. It violates the freedom of speech, freedom of vote and conscience of a member. Rejecting the plea, the Apex Court held that, the provisions of Tenth Schedule do not suffer from the vice or subverting democratic rights of elected members of Parliament and the Legislatures of the States. It does not violate their freedom of speech, freedom of vote and conscience. In India the freedom of speech of a member is not an absolute freedom. The provisions of the Tenth Schedule do not purport to make a member of a House liable in any ‘Court’ for anything said or any vote given by him in Parliament or State Legislature. It cannot be said that Article 105 or 194 is a source of immunity from the consequences of unprincipled floor crossing. That’s why the provisions of paragraph 2 of the Tenth Schedule do not violate any rights or freedom of elected members of Parliament or State Legislatures under Article 105 or Article 194 of the Constitution, and is thus constitutionally valid.
In any democratic set up voice of dissent should be accepted along with voice of consent. Disaccord be accepted with accord, in true sense that would be the beauty of a democratic set up.
Till date it has been observed that any dissent against a party policy deemed to be anti-defection but mere dis agreement with party policy or every disaccord cannot be held as voice against party.
Now, this comes to be a major question of law before the hon’ble Rajasthan Court in case of Prithviraj Meena vs Rajasthan Speaker & has framed 13 questions of law.
Whip versus Disqualification
Another important question of law is framed by the Raj High Court is regarding Whip “Whether Whip as an instrument of party discipline only applied to the action expected out of legislators inside the house? In this regard I remember, A proposed solution that had created the controversy was suggested by Manish Tiwari, Member of Parliament, Lok Sabha. The suggestion is relating to constitutional amendment to limit the scope of paragraph 2 (1) (b) of the bill. The Bill proposed by Manish Tiwari limits disqualification under Paragraph 2 (1) (b) to be a possible sanction only if the member dissents against a Whip issued in the following instances.
motion expressing confidence or want of confidence in the Council of Ministers,
motion for an adjournment of the business of the House,
motion in respect of financial matters as enumerated in Articles 113 to 116 (both inclusive) and Articles 203 to 206 (both inclusive),
The propositions made by Constitution (Amendment) Bill, 2010 are similar to the recommendations made by the Dinesh Goswami Committee on Electoral Reform where it was suggested that disqualification must be imposed only in case of vote of confidence or no-confidence motions. By limiting the ambit of disqualification, this bill seeks to make the necessary change of creating greater room for policy expression, fearless debate and discussion in the Parliament. Such a law would liberate legislators from the whip imposing fear of losing their membership except in cases where the life of the government is threatened by a no-confidence motion, money bills and some crucial financial matters.
Dissent as Right to freedom of Speech and expression
The Constitution (FiftySecond Amendment) Act, 1985 which has since popularly come to be known as the Anti-Defection law, has been the subject matter of a controversy from the very beginning. It has been questioned on several grounds viz, that it is violative of the basic structure of the Constitution, that it is violative of the fundamental principles of parliamentary democracy, its violate democratic rights of the elected members of parliament and the legislatures of the State, and is destructive of the freedom of speech, right to dissent, freedom of vote and conscience, it violates the freedom under Articles 105 and 194 of the Constitution.
Now considering the act of rebel Congress leader, Pilot neither left the party at his will nor talked against party.
Because, the act of Pilot, Certain disagreements with Party Policy does not amount to Anti defection or all the dissent does not amount to anti defection same was observed in the case of In Balchandra L. Jarkiholi Vs B.S. Yeddyurappa.
Delivering the dissenting judgement, Mr. Justice N. Kumar of the High Court set aside the impugned disqualification order of the Speaker and held that an act of no confidence in the leader of the legislative party does not amount to his voluntarily giving up the membership of the political party. Similarly, the act of expressing no confidence in the Government formed by the party, with a particular leader as Chief Minister, would not also amount to voluntary act of giving up the membership of the political party. Deserting the leader and deserting the Government is not synonymous with deserting the party. Dissent is not defection and the Tenth Schedule while recognizing dissent prohibits defection. Right to dissent is the essence of democracy, for the success of democracy and democratic institutions honest dissent has
to be respected by persons in authority. which was later confirmed by hon’ble Supreme Court. Therefore, if we believe in Party Democracy, should also believe in right to Speech & expression as fundamental right & if Right to speech is recognized under party democracy then dissent is not defection. if dissent is not defection then Para 2 (1) a of the tenth schedule of the constitution violating the Basic Structure of Constitution.
The author is practising advocate at Bombay High Court.
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Where did the farm laws go wrong?
The three new agriculture laws implemented by India in September 2020 with little public or legislative debate have piqued the world’s curiosity. The initiatives were portrayed as a gift to farmers by Prime Minister Narendra Modi’s government, but farmers in various Indian states, headed by smallholders in Punjab and Haryana, have refused to accept them.The three laws are:
• The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act,
• The Essential Commodities (Amendment) Act and
• The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act.
The court stated that dozens of rounds of negotiation between the Centre and farmers had yielded no breakthroughs, despite the fact that senior individuals, women, and children among the protestors were exposed to major health risks caused by the cold and COVID-19. It was stated that deaths had already happened, not as a result of violence, but as a result of illness or suicide. The court praised the protesters’ nonviolent character and indicated that it did not intend to stop them.Essentially, in the midst of a pandemic, with a critical vaccination drive underway, the government appears to be employing a two-pronged strategy to break the impasse: reaching out to farmers to bridge the trust deficit in farm laws, and combating disruptive forces that are attempting to take advantage of the situation.
Farmers are concerned that agriculture sector changes would result in the abolition of the minimum support price (MSP) system and the abolition of APMC markets. The government buys farm commodities at a fixed price under the MSP framework. The MSP guarantees that farmers are guaranteed a set price, regardless of supply and demand limits. Farmers have been calling for legislation to ensure that agricultural food is purchased at the MSP. They also urge the government to repeal the Electricity Act modifications.Farmers are concerned that it would lead to the corporatization of agriculture, which will eventually force them out of the industry. They contend that the sale of agricultural produce would be governed by contracts, rendering the MSP regime ineffectual. The law permitted farmers to engage into a direct arrangement with the buyer before to the sowing season and sell their goods at the agreed-upon price at the time of contract signing.
What were the main issues in THE FARMER’S PRODUCE TRADE AND COMMERCE (PROMOTION AND FACILITATION) ACT, 2020 OR THE FPTC ACT as regarded by the farmers?
Though farmers objected to all three agricultural laws, the main issue was this Act, commonly known as the ‘APMC Bypass Bill.’ Cultivators were concerned that its provisions would undermine the APMC mandis.
Sections 3 and 4 of the Act permitted farmers to sell their goods in regions beyond the APMC mandis to purchasers from inside or outside the state. Section 6 barred the collection of any market charge or cess under any state APMC Act or other state law in connection with trading outside the APMC market. Section 14 overruled the contradictory sections of the state APMC laws, while Section 17 enabled the Centre to make regulations for enforcing the law’s provisions.
Farmers were concerned that the new laws would result in insufficient demand for their goods in local marketplaces. They said that moving the produce outside of mandis would be impossible due to a lack of resources. This is why they sell their goods at prices lower than MSP in local marketplaces.
Farmers were also upset with the provisions in Section 8 of the law that stated that a farmer or merchant might approach the Sub-Divisional Magistrate (SDM) to reach an agreement through conciliation procedures. While farmers claim they lack the right to enter SDM offices for conflict resolution, others say this amounts to seizure of judicial authorities.
POSSIBLE ISSUES WITH FARMERS (EMPOWERMENT AND PROTECTION) AGREEMENT OF PRICE ASSURANCE AND FARM SERVICES ACT, 2020
Sections 3-12 of the statute attempted to provide a legal framework for contract farming. Before the planting season, farmers might get into a direct arrangement with a buyer to sell their products at predetermined pricing. It enabled farmers and sponsors to enter into agricultural partnerships. The law, however, made no mention of the MSP that purchasers must provide to farmers.
Though the Centre claimed that the law was intended to liberate farmers by allowing them to sell anywhere, farmers were concerned that it would lead to the corporatisation of agriculture. They were also concerned that the MSP will be eliminated. Critics also claimed that the contract system would expose small and marginal farmers to exploitation by large corporations unless selling prices were continued to be regulated as they were before to the new law’s implementation.
HOW DID THE FARMERS REACT TO THE FARM BILL?
Despite the potential benefits, both parties were unable to reach an agreement on the farm laws, which resulted in their repeal. Farmers who have been protesting at Delhi’s borders and in their states since last year have rejected the Central government’s offers to alter the contentious new agriculture rules. They said that the plan was insufficient and accused the administration of being “insincere,” while also warning the Parliament to step up their protests. Parliament approved these Acts during the monsoon session in 2020. Farmers have long feared that the Centre’s farm reforms will pave the way for the demise of the MSP system, leaving them at the whim of large corporations. However, no resolution was reached, and no date for the next round of discussions was set for the first time. Following the failure of these discussions, the Supreme Court suspended the execution of these farm legislation. Farmers were overjoyed when these rules were removed on November 19, 2021.
Declaring vaccination mandatory in India: A last resort towards battling Covid-19
With the spread of novel coronavirus (COVID-19) across the globe, there is hardly any country which has been able to protect its citizens from it. During this unprecedented situation which has persisted more than a year, this pandemic has claimed as many as 3.18 lakh lives in India itself, making the situation abysmal and chaotic in the country. But a silver lining arose on January 03rd, 2021, when the Government of India approved emergency authorization for Covishield and Covaxin for effectively tackling the pandemic situation.
Till date, around 160 crore people have been vaccinated out of which around 4.24 crore have been fully vaccinated. As can be evidently seen, India’s COVID-19 vaccination drive is alarmingly behind schedule, especially when India is facing an unforeseen situation and it is the need of the hour to rustle up the vaccination drive. Indubitably, the government has miserably failed in procuring vaccines leading to an inordinate delay in inoculating people. One of the reasons behind such a delay is an acute shortage of supply of vaccines from the manufacturers. But there is another hidden but known facet which has conspicuously reduced the percentage of vaccinated population despite vaccines being available at local vaccination centers. Suspicions and myths pertaining to vaccines in general are creating mistrust among people, especially for those residing in rural or marginalized areas, who are very skeptical about getting inoculated. Due to such fear and apprehension, people are not registering for vaccination and even after scheduling an appointment, they are not turning up for vaccination at the centers leading to wastage of thousands of doses raising a cause for concern in the entire country.
First and foremost step to be taken by the government is to initiate an awareness drive throughout the country by educating the people residing especially in rural and marginalized areas about the various personal and community health benefits of getting vaccinated. However, in case there is timely and unhindered supply of vaccines and yet people refuse to take it then the government must promulgate laws making vaccination compulsory in the nation. Although, it is not always necessary to go through the trouble of making vaccination compulsory but it should only be kept as a last resort to tackle the problem. It is well within the legislative powers of the State Legislature to enact such a law related to public health and sanitation. (vide Entry 6 List-II of the Seventh Schedule of the Constitution on India). Here, a focus needs to be drawn to a similar step taken by the British Government to make smallpox vaccination compulsory by way of the Vaccination Act of 1892. Another example was laid down by the US Supreme Court which upheld the law made by the State for compulsory vaccination stating that is well with its police power for the protection of public health.
LAWS EMPOWERING THE GOVERNMENT TO MAKE VACCINATION MANDATORY
The Epidemic Disease Act of 1897 contains provisions empowering the government to take whatever measures it deems necessary to prevent the outbreak or spread of an epidemic disease, provided the existing laws are not sufficient to deal with the situation. Moreover, a collective reading of numerous provisions of the National Disaster Management Act of 2005 shows that the Central Government is empowered to constitute a National Disaster Management Authority which can lay down the policies, plans and guidelines for disaster management for ensuring timely and effective response to a disaster. The Central Government has invoked its power under Section 6 (2)(i) of the Disaster Management Act, 2005 directing the State Governments to restrict the movement of people and various other activities in the beginning of the pandemic and those can be applied for the process of vaccination too. Under such laws, the government can formulate policies for compulsory vaccination during the current unprecedented situation in India.
ENFORCING MANDATORY VACCINATION
It is certainly not advisable to impose penal action like imprisonment against an individual who refuses to get inoculated. There are several ways through which the government can enforce mandatory vaccination on such individuals. For instance, it can impose fine on people who refuse vaccination. Another way can be by imposing a reasonable restriction on the movement of an individual within any part of this country since the freedom to move freely within the territory in India is subject to reasonable restrictions as laid down under Article 19(5) of the Constitution of India. Moreover, for the people who are visiting India, vaccination must be compulsory upon failure of which can lead to restricting the use of their passport by the Government by exercising its powers under the Passport Act, 1967. Alternatively, if a person still refuses to get vaccinated upon his arrival in India, he shall be mandatorily kept under 7 days institutional quarantine as per the guidelines for international arrival issued by the Ministry of Health and Family Welfare (MoHFW). Moreover, for foreigners who are not vaccinated, the government can pass an order under Section 3 (2) (e) of the Foreigners Act, 1946. For example, people applying for immigration to the United States need to show their vaccination certificates. Otherwise the applicant must be given those vaccines at the time of medical exam.
Making COVID-19 vaccination mandatory for people can have some serious legal concerns. A person can claim that the legislation making vaccination compulsory is violative of the right to privacy under Article 21 of the Constitution of India. The term privacy has been interpreted in its widest sense so as to restrict the government from infringing it by way of an unfair, unjust and unreasonable laws and regulations. But it is pivotal to argue that the right to privacy is embraced under the right to life and personal liberty which may be restricted according to the procedure established by law. Therefore, the right to privacy can very well be curtailed by the government by way of enacting just, fair and reasonable law which is in interest of public at large (vide K.S Puttaswamy v Union of India). Further in the case of Evara Foundation vs Union of India in the affidavit it was stated that “It is humbly submitted that the direction and guidelines released by Government of India and Ministry of Health and Family Welfare, do not envisage any forcible vaccination without obtaining consent of the concerned individual”.
At this juncture, it is also pertinent to give reference to Hohfeld’s theory of jural relations. As Hohfeld says, if a person has a right, then that right is accompanied by a duty to protect the rights of others. In other words, the people are guaranteed the right to privacy which can be restricted by making the vaccination compulsory for the people refusing to take the vaccination for collective public interest, since COVID-19 will continue to spread if people do not get vaccinated. For instance, if majority of the population in the Country is vaccinated then it will obviously break the chain of the spread of the virus and the positivity rate will come down.
Moreover, there are many developed countries across the world like U.K., Australia, France, Italy, who have made the vaccination mandatory for their citizens despite the fact it is not the last resort but it was the only way to break vicious cycle of waves of the virus. In addition, India is a developing country where the health care system is ineffective to cater the vast number of populations. So, India should also follow the footsteps of the developed countries in order to save the lives of its citizens.
In order to achieve herd immunity by vaccinating a large number of people either by way of voluntary vaccination or forced vaccination, equitable distribution of vaccines is a pre-requisite, failure of which can render the former otiose. There is an obligation on part of the government to ensure that there are no obstacles or impediments in providing vaccines all across the nation without any discrimination.
PIYUSH GOYAL CALLS UPON STARTUPS TO LEVERAGE ‘DEEP TECH’
Goyal says start ups to build solutions for local & global markets: AI, IoT, Big Data, etc.
The Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, Piyush Goyal today called upon the Indian industry to aim for raising 75 unicorns in the 75 weeks to the 75th anniversary of Independence next year.
“We have added 43 unicorns added in 45 weeks, since the start of ‘Azadi ka Amrit Mahotsav’ on 12th March, 2021. Let us aim for atleast 75 unicorns in this 75 week period to 75thAnniversary of Independence,” he said, while releasing the NASSCOM Tech Start-up Report 2022.
Goyal said Startup India started a revolution six years ago and today ‘Startup’ has become a common household term. Indian Startups are fast becoming the champions of India Inc’s growth story, he added.
“India has now become the hallmark of a trailblazer & is leaving its mark on global startup landscape. Investments received by Indian startups overshadowed pre-pandemic highs. 2021 will be remembered as the year Indian start-ups delivered on their promise, – fearlessly chasing opportunities across verticals – Edtech, HealthTech & AgriTech amongst others,” he said.
Goyal lauded the ITES (Information Technology Enabled Services) industry including the Business Process Outsourcing (BPO) sector for the record Services exports during the last year. “Services Export for Apr-Dec 2021 reached more than $178 bn despite the Covid19 pandemic when the Travel, Hospitality & Tourism sectors were significantly down,” he said.
• “Let us aim for at least 75 unicorns in the 75 weeks to the 75th Anniversary of Independence”: Piyush Goyal
• Goyal lauds the ITES industry including the BPO sector for the record Services exports during the last year despite the pandemic
• Piyush Goyal says the PM’s interaction with Startups a week ago has supercharged our innovators
• The next “UPI moment” will be the ONDC (Open Network for Digital Commerce) – Goyal
• New India is today being led by new troika of Innovation, Technology & Entrepreneurship (ITE), ‘India at 100’ will be renowned as a Startup nation: Goyal
Subhas Chandra Bose statue to be installed in India Gate, announced PM Modi
Prime Minister Narendra Modi announced on Friday that a grand statue of iconic freedom fighter Netaji Subhas Chandra Bose will be installed at India Gate. This announcement came ahead of the 125th anniversary of Netaji Subhas Chandra Bose. Prime Minister Narendra Modi announced that his statue will be installed at India Gate to honor his contribution to the independence movement.
The Prime Minister further said that Bose’s grand statue will be made of granite and will be a symbol of India’s indebtedness to him. “Till the grand statue of Netaji Bose is completed, a hologram statue of his would be present at the same place. I will unveil the hologram statue on 23rd January, Netaji’s birth anniversary” PM Modi tweeted
“At a time when the entire nation is marking the 125th birth anniversary of Netaji Subhas Chandra Bose, I am glad to share that his grand statue, made of granite, will be installed at India Gate,” PM Modi tweeted on Friday. “This would be a symbol of India’s indebtedness to him.”
The statue will be installed under the grand canopy near which the Amar Jawan Jyothi flickers in remembrance of India’s martyrs. The eternal flame, which has not been extinguished for 50 years, will be put off on Friday, as it will be merged with the flame at the National War Memorial.
The canopy, which was built along with the rest of the grand monument in the 1930s by Sir Edwin Lutyens, once housed a statue of the former king of England George V. The statue was later moved to Coronation Park in Central Delhi in the mid-1960s.
The announcement was hailed by many Bharatiya Janata Party (BJP) leaders, Union ministers and civil society members.
“Great news for the entire nation as PM @narendramodi Ji has today announced that a grand statue of Netaji Subhas Chandra Bose, will be installed at the iconic India Gate, New Delhi. This is a befitting tribute to the legendary Netaji, who gave everything for India’s freedom.” Amit Shah tweeted.
“Netaji is an epitome of India’s true strength & resolve. Congress has left no stone unturned to forget the immortal contributions of India’s brave son. PM @narendramodi’s decision to install Netaji’s statue at India Gate on his 125th Jayanti will inspire our generations to come.” Amit Shah added in his tweet.
The Prime Minister Narendra Modi will unveil a 216-foot statue of Ramanujacharya, a 11th century saint and a social reformer, in Hyderabad on February 5. The statue described as the ‘Statue of Equality is located in a 45-acre complex at Shamshabad on the outskirts of the city.
‘US, India should set bold goals to attain $500bn target’, said Keshap
Having achieved a huge success in their bilateral relations, two of the world’s greatest democracies – India and the United States of America should opt in favour of setting bold goals in order to take their relationship to a new high thereby achieving the ambitious target of $500 billion in bilateral trade echoes retired American Diplomat Atul Keshap, who recently became the new president of the US India Business Council (USIBC).
“I think it’s vitally important that we show that democracies can deliver; that the United States and India can be a driver of global growth and a model for prosperity and development in the 21st century,” Keshap said.
During his illustrious career, the veteran diplomat has served in various capacities with the US State Department. He has been the US Ambassador to Sri Lanka and the Maldives and has also served as the Principal Deputy Assistant Secretary of State.
In 2021, he took over as the Chargé d’affaires of the United States mission to India and has been instrumental in shaping the US-India ties under the Joe Biden administration.
“I feel it’s critically important that we show that open societies powered by a free enterprise can be relevant for their people and can help power the world out of this pandemic. I tend to agree entirely with President Biden and PM Narendra Modi that the US India Partnership is a force for global good and it’s going to have a huge impact on economic growth,” he said.
Keshap feels that USIBC is the podium where he can give his best and help the people from both countries. “We need to move forward on the global trade agenda. We need to ensure the prosperity of the future, especially after this pandemic,” he said.
The 50-year-old diplomat reflected on the vision set by Biden, about potentially having a $500 billion trade in goods and services between the US and India. “That’s a very ambitious number and I believe in it. It is a great idea to try to have ambitious targets, else we are on a standstill” he said.
Having donned the new role recently, Keshap said he wants to help meet that $500 billion bilateral trade goal. “This is where the government and the private sector have to work together hand-in-hand,” he said.
“We have to articulate the benefits and have to convince all our stakeholders that there is value in lowering trade barriers, in creating strong standards and in creating positive ecosystems. There is value in dealing with small technical issues that might be creating a blockage to greater prosperity between our countries,” Keshap said.
Coal crisis: How private sector can power India’s growth
India has been reeling under a coal shortage crisis and the situation got aggravated in October 2021 leading to a lot of concern amongst various stakeholders including government bodies, thermal power plants, industry and investors. The shortages, triggered by global factors, of course with Indian peculiarities, threatened supplies to thermal-based power plants, leading to an alarm.
Recovering from Covid-19-induced reverses, the global economy has rebounded and gathered steam. This was one of the prime reasons why there was an acute shortage of coal and sources of energy, worldwide. Global coal prices have risen by 40 per cent.
Port based Indian power plants normally rely on imports. Given the global conditions, and the sharp rise in coal prices internationally, the power plants are now almost solely dependent on Indian coal. It’s in this context that the coal crisis has been amplified by various stakeholders.
While global factors did contribute, did we fail to take necessary action, over a period of time? To highlight one prominent factor: Why should the Coal India Limited have monopoly over coal mining / supplies? Consider the CIL performance in the last few years: Its output was 606 MT in 2018-2019, 602 MT in 2019-2020, and 596 MT in 2020-2021. Contrast this with various governments’ efforts to ramp up Coal production in the 1992-2010 period.
So, why did Coal India Limited fail to expand capacity? This is one big question that must be debated. It can therefore be argued that CIL’s monopoly on coal extraction and supplies (till very recently) is one of the prime reasons why India’s thermal power plants faced a coal crisis.
India has the world’s fourth-largest coal reserve, with around 300 billion tonnes of coal. But it is also true that it imports approximately 250 million tonnes of coal. This is because we don’t mine enough and use our resources optimally.
CIL supplies 80 per cent of India’s coal needs. The demand for coal in India is nearly a billion tonnes a year, and the supply is below 800 million tonnes.
Unfortunately, based on then CAG Vinod Rai’s miscalculations and the Notional Loss theory, the Supreme Court cancelled 214 coal blocks in September 2014. Private players were not given a patient hearing on the issue. Rather than encouraging them, the private sector got punished unfairly for its efforts to strengthen the economy through coal mining. If 100 out of 214 of those mines were functional and each one was producing, say, 4 mtpa of Coal, India today would be a net exporter, not importer, of Coal.
Rai’s theory and the Supreme Court judgment had devastating consequences. The coal production in the country took a hit. The country’s GDP declined by almost 1 per cent. Millions of jobs were lost. NPAs of banks with exposure to power, steel and mining sector rose exponentially. Such is Rai’s credibility that he recently tendered an apology to a Congress leader, who, Rai claimed in his book, “requested him to remove then PM Manmohan Singh’s name from the coal scam”. Taking a cue, if someone sues Rai for his Coal Scam theory and numbers, would he be able to defend his report in court?
Against the recommendations of CAG of incentivizing good performers who produce coal, the Supreme Court imposed an additional levy of 295 rupees per ton on the coal extracted from operational mines retrospectively from 1993. The private miners were directed to deposit more than Rs. 9000 crore as penalty.
The stagnating CIL coal output should be seen in this background. Being a monopoly, CIL could have been a saviour for the nation. CIL however neither ramped up production nor invested in technology or expansion of new mines.
In 2020, in a bold and much welcome development, the Union Government opened up commercial coal mining, thus ending Coal India’s monopoly. PM Modi said that he wanted India to be a net exporter of coal, as he set ambitious targets.
A lesson from the recent crisis is this – the CIL monopoly, along with the no-entry sign for the private sector, harmed the country.
There are lessons to be drawn from the opening up of the aviation sector for the recent coal crisis episode. With a series of measures, the aviation sector was opened up, with the Air India privatisation being the latest example. The economy, the nation and consumer benefitted. When sectors as diverse as Steel, Infrastructure and Healthcare were unshackled, the end consumer, the economy and the nation benefitted.
Similarly, if the private sector in coal mining would have been encouraged consistently, and ill-advised measures like cancellation of coal blocks not taken, the coal situation would not have come to such a pass. In 2014, the private sector was said to be accounting for 90 million tons of coal – a substantial figure. Instead of getting encouraged, the private sector had to fight protracted court cases and spend its time wastefully.
There’s a consensus that Coal would continue to power economic growth for a country like India for the next two decades. It’s important that this abundantly-available natural resource is used optimally. The Private Sector can play a key role here.
The Government has shown intent and commitment. It’s time for all the stakeholders to ensure that the country faces no shortage of Coal hereafter. It’s time we all learnt our lessons and ensure that Coal and Mining booms and fires India’s growth march.
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