Manish Kumar
Post News Network
Bhubaneswar, Sept 25: The recently-released World Bank ranking, which puts Orissa in the seventh position with regard to ease of doing business is a reflection of the policies of the state government, which has not been able to create confidence among industry honchos, according to experts.
This is evident in the ongoing coal block allocations for captive mining and the expectations for the upcoming auctions for commercial mining that hint at the lack of drive in the government in attracting industries to the state.
In the last few months, the state has lost some coal blocks to PSUs of other states or other entities. Had these been allocated to private players in the state or state PSUs, it would have benefitted the state.
However, the Orissa government’s lack of persuasiveness with the Centre for more coal blocks seems to have hampered the state’s industrial and financial growth.
Experts said it is imperative for the state government to advocate for more coal blocks from the Centre.
“Advocacy with the Central government for coal allocation is imperative. It is necessary for the
states to tell the Centre about their needs and demands. If the Centre
is convinced about the demands,
it will take a decision after assessing the ground realities,” Subhasri Choudhuri, secretary general of the Coal Consumers Association of India told Orissa POST.
Those in the know of the government’s role in the coal block allocation believe not much has been done by the government for industries in Orissa. Many feel that the government is treading cautiously in the aftermath of the coal scam. However, the government’s reluctance to bat for industries in the state has been giving outsiders a free hand.
In March, the Naini coal block, which the state government was eyeing for the Orissa Thermal Power Corporation in Dhenkanal, was allocated to Singareni Collieries Company Limited of Telengana. Later, the Chhendipada and Chhendipada II blocks were taken from Orissa, which the state government was keen to have through one of its PSUs.
Orissa is the second-largest coal bearing state in the country with a reserve of 75,073 million tonnes of coal. However, this repository of wealth seems to be exploited by outsiders.
“Just because some charges were leveled in the coal sector does not mean the state government should shy away and not bat for industries that can help the state in terms of employment and investment and also help in supply of material to local industries,” said another mining expert on condition of anonymity.
In February 2010, Chief Minister Naveen Patnaik wrote to then Prime Minister Manmohan Singh for allocating 10 coal blocks for the state. However, now the state has demanded only one coal mine from the Centre for commercial mining for state PSUs, according to sources in the government. Many believe the soft stance of the state government is adversely impacting revenue and investment prospects of the state.
Phone calls and emails sent by Orissa POST to state government officials dealing with coal mining and energy did not garner any response.