After probe, CBI to help plug holes in allocation | delhi | Hindustan Times
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After probe, CBI to help plug holes in allocation

delhi Updated: Sep 09, 2012 00:28 IST
Rajesh Ahuja
Rajesh Ahuja
Hindustan Times
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After completing its probe into the coal scam, the CBI will recommend ways for the Union coal ministry to plug holes in the block allocation system. With many of the companies turning out ineligible to hold coal blocks, the focus is likely to be on the evaluation system itself.

“The CBI will definitely send its recommendations to the Union coal ministry after the probe is over,” said a source.

After every major probe, the CBI sends a set of recommendations — aimed at putting an incorruptible system in place — to the department concerned.

Sources said that so far, the investigation has revealed instances of private companies making false claims about their net worth, previous block allocations, and tie-ups with other firms. CBI officials say there is an urgent need to make the system more transparent, so ineligible companies cannot slip through the net.

The screening committee system, which was adopted to allocate coal blocks between 2006 and 2009, was criticised by the Comptroller and Auditor General (CAG) too.

“The screening committee had to make recommendations on the basis of factors such as the company's net worth, its technical experience, and recommendation of the administrative ministry. But it seems to have overlooked many of these factors,” the source said.

IMG gets extension

The inter-ministerial group (IMG) reviewing the progress of 58 coal blocks allocated to private firms without auction is likely to continue its evaluation for a couple of days. The three-day review period, which began on Thursday, was extended because the IMG could hear out only 27 private players.