Coal Scam Final With Name

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Coalgate Scam – The Coal mining Scam17 April 2012

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Content

• Global mining Industry

• Coal and mining sector in India

• Coal India Ltd.

• Coalgate scam

• CAG – Comptroller and Auditor General

• Problem Areas

• Suggestions & Solutions

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King Coal

• Cheaper per unit energy than oil or natural gas

• Will continue to be an important global resource

• Coal is the world’s most abundant fossil fuel

•

Larger power plants are more efficient

• Safest fossil fuel to transport, store and use

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Coal Mining

Surface MiningStrip Mining

Underground Mining

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World coal production by region, 1980-2010

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Asia coal production by country, 1980-2010

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World coal consumption by region, 1980-2010

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Asia coal consumption by country, 1980-2010

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STATISTICAL INFORMATION

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Coal (Million

Short Tons)

Production

Consumption

Net Export/

Imports(-)



COAL OPERATION

• Jharkhand

• West Bengal

•

Orissa• Chhattisgarh

• M.P.

•

U.P.• Maharashtra

• Assam

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Ms. Zohra Chatterji

Chairman-cum-Managing-Director

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Coal India Ltd.

• Contributes around 85% of coal production in India.

• Meets 46% of commercial energy needs of the country

• Single largest coal producing company in the world

• Employs over 420 thousand persons and is the largest corporate

employer in the country.

• One of the largest Companies in the country, turnover being 9.69

billion US $ in 2009-10

• Paid 1.09 billion US $ to Govt. exchequer by way of tax in 2009-10

• Paid highest ever Dividend of 426 million US $ to the govt. of India in

2009-10

• In India, CIL offers coal at much lesser price than the international

prices.

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The Coal mining Scam - What went

wrong

• The preliminary findings from the Comptroller &

Auditor General's (CAG) office accuse the

government of providing the nation's coal deposits to

private and state-run entities instead of publiclyauctioning them off to the highest bidder, resulting in

staggering, multi-billion dollar losses from 2004-

2009

• The issue of selection process for allocation of coal blocks for captive mining have been raised in the

Parliament and in the media.

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Continue......

• A CAG report in national daily 'The Times of

India' says the government lost Rs 10.67 lakh

crore by not auctioning coal blocks between

2004 and 2009.

• Despite a CBI inquiry, there was no action by

either the central or state government on a

politically-connected company who allegedlyused forged documents to get the mines.

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• The Indian Bureau of Mines rules which

control the type of mining, allow a maximum

mining depth six metres to prevent

environmental degradation.

• But miners have flouted this rule to over-

extract iron-ore. For example, if they are

allowed to take 100 metric tones, mines take1,000 metric tonnes.

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Continue......



Process of allocation of coal blocks

• In July 1992 Moc, issued instructions for

constitution of a screening.

• From 1993 to 2005, there was no clearly spelt

out criteria for allocation of coal mines and

most of the mines were allocated to the

applicants who had produced only a letter of

recommendation.

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Comparison of Scams

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Name of theScam

Year of theScam

Amount

2G November 2010 1.76 Lakh Crore

CWG August 2011 70 Thousand Crore

COALGATE 22 March 2012Actually happened

in 2004-2009

10.67 Lakh Crore



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Comparison of Scams continue…..

Scams Minds behind the

Scams

2G Kapil Sibal

CWG A Raja

COALGATE Madhu Koda

B.S.Yeddyurappa

and many more…..

P liti l l d i l d i C l i i



Political leaders involved in Coal mining

scam

B.S.Yeddyurappa - Former

Chief Minister of

Karnataka

Madhu Koda – Former

Chief Minister of

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Video



Union government commission to

probe illegal mining

• The mining ministry of the union government has

announced a special commission to investigate the

various cases of illegal mining in India.

• B.K.-Handique Union Minister for Mines and

Development of North Eastern Region, announced

that the investigation spanning Karnataka, Orissa

and Jharkhand, will submit a report in 6 months.

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CAGComptroller and Auditor General

Vinod Rai 23

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• The CAG of India is an authority, established by theConstitution of India, who audits all receipts &expenditure of the Govt. Of India & the state govt.

• The current CAG of India is Vinod Rai, who wasappointed on 7 January 2008. He is the 11th CAG of India.

• Manmohan Singh has said the CAG is "going beyondits mandate".

Comptroller and Auditor General

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P bl A



Problem Areas

Environmental damage

• According to the Lok Ayukta Report, there have beensevere ecological changes due to illegal mining.

• Certain species of animals, like the sloth bear, that in

the Bellary region have disappeared.• Medicinal plants from the area do not grow anymore.

• The entire system of rain has changed in the district

of Bellary.• It is reported that the entire area surrounding the

mining area is denuded of greenery and has no

agricultural activity.25Poonam



Effects on the environment and Human health

CO2 ~ carbon dioxide pollution, making energy use the single

largest source of greenhouse gases in the India and the world

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Destruction of the environment

Eff t th i t d



●SO2 - Sulfur dioxide combined with nitrogenoxide react with water and oxygen in theatmosphere to form acidic compounds, whichcan mix with natural precipitation and fall tothe earth as acid rain.

● Sulfur dioxide can also combine with nitrogenoxide and other particles to form particulate

matter.

● trigger heart attacks and strokes

● lead to cardiac arrhythmia (irregular heartbeat)

● respiratory irritation, and worsen asthma.

● premature death (Both short-term and

long-term exposure)

Effects on the environment and

Human health

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Suggestions

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