Adani - Coal Mafia | Jan Hith Mein Jaari w/ Kunal Kamra | 01
This new series, 'Janhit Mein Jaari', aims to shed light on issues that people should know about but are often kept hidden or ignored by the media. We'll be looking at topics that matter, even if they don't make it to the headlines.
The Rise of Adani as Coal King
The story we're diving into today is how Adani became the 'Coal King', and it all started by sidelining Coal India. Back in 2013-14, Coal India was considered a top-performing government company. It even paid the Indian government ₹10,000 crore in taxes during 2014-15 and was granted 'Maharatna' status in 2011, making it the fifth company to receive this prestigious title among 215 public sector enterprises. Today, it still holds the title of the world's largest coal producer.
Key Takeaways
- Coal India was a highly profitable government company, contributing significantly to the national exchequer.
- Despite its success, policy changes and a manufactured crisis paved the way for private players.
- Allegations of coal shortages were used to justify opening up mines to private entities, including Adani.
- Environmental concerns were overridden to facilitate coal mining in sensitive areas.
- Adani has been accused of inflating coal prices and using low-grade coal, potentially impacting consumers and the environment.
Why the Shift from Coal India?
When a public sector company is privatised, the usual reasons given are inefficiency or being a drain on taxpayer money. The idea is that private players will bring in more efficiency. However, Coal India wasn't facing these issues. So, the question arises: if everything was running so well, why hand over our coal mines to Adani?
The narrative suggests it wasn't a necessity but a planned move. In June 2020, amidst the COVID-19 lockdown, a notification was quietly passed allowing private companies open access to coal mining. While people were struggling, the government saw this as an 'opportunity in disaster'. This notification essentially rolled out a red carpet for private companies.
The Coal Shortage Scare
To justify this move, a story was needed. In October 2021, a narrative was created in the media about a severe coal shortage, with reports claiming power plants had only four days of coal left. This caused widespread panic. However, at the same time, the Coal Ministry stated in Parliament that there was no coal shortage, and stocks were actually high.
Reports from the Centre for Research on Energy and Clean Air (CREA) also indicated no shortage in coal production. The issue was reportedly due to poor stocking at thermal power plants. In fact, 2022 saw the highest coal production in India, an 8.5% increase from 2021. CREA also noted that only half of the country's mining capacity was being used, meaning existing mines could have been ramped up to meet demand.
The Government's Response and Adani's Entry
The government's explanation for the supposed shortage was a sudden surge in demand. They pointed to increased household consumption as the economy opened up. However, CREA suggested that simply adding 50 more wagons to existing coal trains could have resolved the issue, a far simpler solution than opening new mines.
The People's Commission on Public Services and Public Sector highlighted that it's the government's job to forecast and manage such situations. If a shortage occurred, it was due to the government's failure to predict and prepare.
Environmental Concerns and Adani's Deal
Experts had already warned that citing coal shortages was a ploy to hand over more mines to private players. The government's own Environment Ministry had previously halted coal mining in several blocks due to severe environmental concerns. Yet, the Coal Ministry pushed to open these mines.
Central Mine Planning and Design Institute (CMPDI), a body set up by the government, was brought in to override environmental concerns. However, CMPDI itself advised against opening certain coal blocks. Despite this, the Coal Ministry decided to proceed, ignoring environmental experts. Four blocks were put up for bidding, with Adani being the sole bidder for one significant block in Singrauli, reportedly containing 250 million tonnes of coal.
The Adani Factor: Price Inflation and Quality Issues
Financial Times investigations revealed that Adani imported coal from Indonesia and doubled its price by the time it reached Mundra Port in Gujarat. Furthermore, Adani was accused of importing low-grade coal and selling it at high-grade coal prices. Low-grade coal burns more and produces less energy compared to high-grade coal.
If Adani is involved in such practices in coal trading, the implications of giving them direct control over coal mines are significant. This could potentially lead to higher electricity bills for consumers and negative impacts on health due to the burning of lower-quality coal.
The Coal Scam Legacy
During the UPA 2 government, the 'Coalgate' scam was a major issue, with allegations of irregularities in coal block allocations. The BJP, then in opposition, heavily criticised the government over this. However, upon coming to power, the same government allegedly changed the coal auction rules. Reports suggest that mines could be handed over to a sole bidder even without competitive bidding.
This brings us to the protests in Hasdeo, known as the 'lungs of Chhattisgarh'. The tribal communities there are protesting against Adani, not just for their forests but for everyone. The question remains: who will bear the cost of coal, and what will be the impact on the unemployed youth?
