When it comes to the cap on the consumption of subsidised domestic LPG cylinders, the Cabinet Committee on Economic Affairs (CCEA), it appears, has two sets of rules — one for the common man, and one for those holding Constitutional posts.

While approving the cap on LPG cylinders to six per year for households, the CCEA and the Petroleum Ministry cited last year’s report by the Parliamentary Standing Committee on Petroleum and Natural Gas to support its case.

Monnet Ispat may be asked to submit bank guarantee amounting to three years’ royalty

Cracking the whip on private companies for failing to develop coal blocks allocated to them within a time frame, the Coal Ministry on Thursday said it accepted the recommendations of the Inter-Ministerial Group (IMG) and notified de-allocation of four blocks and deduction of bank guarantee in the case of three companies.

The Central Bureau of Investigation has begun probing six more private mining and coal companies which are believed to have secured coal blocks wrongfully and by misrepresenting facts. A fresh round of first information reports is likely to be registered by month-end, government sources said.

The CBI is scrutinising the role of the six companies, some having been allotted coal blocks in Jharkhand, and also probing firms and people who were closely associated with Madhu Koda who had ruled the State with Congress support.

In a step that is likely to hit consumers further, the Petroleum and Natural Gas Ministry has moved the Cabinet for a hike in prices of diesel, LPG cylinders and kerosene. The Cabinet will also discuss putting a cap on number of subsidised cylinders for each household up to a certain income limit.

In addition, elected members, including Ministers, MPs, MLAs, MLCs and councillors, are likely to face discontinuation of subsidised LPG cylinders. The Ministry may impress upon the Cabinet to take a call on imposition of a higher duty on diesel vehicles in view of the massive jump in consumption of the fuel in the recent past. In July, diesel sales jumped by 12 per cent, sending the alarm bells ringing.

“They need to be dealt with firmly and their blocks de-allocated as per the terms”

The Coal Ministry has acknowledged that the conduct of the coal block allottees, some of whom are among those who were issued show-cause notices and raided by the CBI, had not been above board as they diverted coal for sale in the open market in violation of the condition of allotment and sold their companies at a heavy premium after getting a coal block. This acknowledgement came in its internal note on coal policy.

Underlining the need for ramping up coal production to meet the growing domestic demand, the Inter-Ministerial Group on PPP in coal mining, comprising the Planning Commission, the Department of Economic Affairs (DEA) and the Coal Ministry, has strongly pressed for Public-Private Partnership mode for mining and evacuation of coal from Coal India Limited-owned mines.

At a meeting of the Inter-Ministerial Group (IMG) held recently, the DEA pointed out that there were 180 coal blocks available with CIL, of which some could be given to private sector operators on the PPP basis for mining.

To check the adverse impact of a possible cancellation of the coal blocks allotted to companies that have failed to fulfil the norms for making them operational by March 2013 and prevent a “fuel crisis,” the government proposes to hand over all cancelled blocks to Coal India Limited (CIL).

This view has emerged even as the Inter-Ministerial Group (IMG) on coal blocks met on Monday to take a decision on the 58 blocks that have been issued show-cause notices and advisories.

Shaken by the recent failure of the northern grid and subsequent collapse of the eastern and north-eastern grids, the Union Power Ministry has decided to take up the work of connecting the southern grid with the national grid on a war footing, a task likely to be achieved by 2014.

Ministry officials said that after having learnt a lesson from the two-day blackout in major parts of the country, the Ministry has stepped up the work of integrating the southern grid with the national grid that could not only help in efficient and effective transfer of electricity from various regions, but also provide a huge relief to the power starved South.

The Central Bureau of Investigation is finalising a report on its probe into the allocation of coal blocks and is understood to have unearthed discrepancies in the allocations, with the involvement of officials of State governments at various levels.

The CBI is preparing the ground for lodging of a first information report (FIR), which could well become the basis for cancellation of allocations. Sources in the government said the CBI scrutinised around 1,400 applications and found that a number of private players had either misrepresented facts to get allotment or were recommended by the respective State governments.

Coal Minister Sriprakash Jaiswal on Wednesday accused the Opposition-ruled Chhattisgarh, Jharkhand, Rajasthan and Orissa of blocking the smooth implementation of the competitive bidding process, initiated by the Centre in 2004.

At a press conference here, he said the competitive bidding process for coal blocks allocation could not be implemented due to stiff opposition from coal-rich Chhattisgarh, Jharkhand, Rajasthan, Orissa and West Bengal when it was ruled by the Left Front government. Hence it was wrong to blame Prime Minister Manmohan Singh on the issue.