Play of words as Modi denies privatisation of SCCL

Hyderabad: Prime Minister Narendra Modi on Saturday indulged in a clever play of words and technicalities while stating that there was no proposal for privatization of the Singareni Collieries Company Limited (SCCL). There was no proposal of privatization, true, but what Modi did not mention were the attempts, acknowledged by the Centre in the Parliament […]

Hyderabad: Prime Minister Narendra Modi on Saturday indulged in a clever play of words and technicalities while stating that there was no proposal for privatization of the Singareni Collieries Company Limited (SCCL).

There was no proposal of privatization, true, but what Modi did not mention were the attempts, acknowledged by the Centre in the Parliament as well, to auction off coal blocks of the SCCL, to private players. His statement that with the State government holding 51 percent stake in SCCL, the Central government could not take any decision on the SCCL on its own, was also slightly misleading in this context.

---

To understand the technical play of words here, one has to remember what happened late last year, when four coal blocks – Kalyan Khani Block-6, Koyagudem Block-III, Sathupalli Block-III and Shravanapalli – located in Telangana were offered for allocation by way of auction for sale of coal under the Mines and Minerals (Development and Regulation) Act, 1957. The auction was open to private players as well.

The Centre’s stand at that time, when Telangana opposed this and asked that the blocks be reserved to SCCL only, was that reservation of coal blocks for SCCL would ‘become a precedent for others’, and that there was no need for such reservation, indicating that the Centre could in fact override the State.

Union Coal Minister Pralhad Joshi in a reply to N Uttam Kumar Reddy in the Parliament in February said the auction was part of the Ministry of Coal’s decision to gradually shift towards allocation of coal blocks through auction only. PSUs like SCCL could participate in auction and take the block, but would not get blocks reserved to it.

Chief Minister K Chandrashekhar Rao had then appealed to the Prime Minister to immediately stall the auction of the four coal blocks belonging to SCCL, pointing out that SCCL required these blocks as it was playing a key role in meeting coal requirements of thermal power stations in Telangana, Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu.

The auction, and private players getting the coal blocks, would have an adverse impact on the coal demand in the Singareni area, in turn affecting the SCCL’s prospects, and in the long run, heavy losses as well.

Though the first round of auctions had no bid received for Sattupalli Block-III, Shravanapalli and Kalyan Khani Block-6, they were again put up for auction, once again over-riding the State’s and SCCL’s requests.

This is one aspect that Modi chose to keep quiet about on Saturday. Instead, he chose to spin the fears of privatization, and also of the SCCL weakening if its blocks were auctioned to private players, as mere “rumours”, and went on to say that coal mines were being auctioned with complete transparency keeping in view the increasing need for coal in the country.

Anti-Modi protests continue

Earlier in the day, protests against Modi’s visit continued across the State. Leaders and activists of Left parties were arrested by police after protests, including in Hyderabad and Peddapalli, against the Centre’s discrimination towards Telangana.

Protests were also organised by Left parties and employee unions of SCCL in Peddapalli to oppose the Centre’s move to privatise coal blocks. Posters, banners and flexis also came up in Hyderabad and in Ramagundam questioning Modi about the commitments made to Telangana at the time of bifurcation.

Protests were also staged in Mandamarri, Godavarikhani, Kothagudem and other places. Left demonstrations were held in all constituency headquarters across the erstwhile Khammam too.