Stunted Growth

It certainly is worrisome that India’s remarkable growth story has hit a major roadblock with the rate of growth plummeting from the exalted position of 8.4 per cent in 20102011 to an abysmal 6.9 per cent in 2011- 2012 and the consequent fall of the Indian rupee to an alltime low (“No Business of the State”, May 28). It is little wonder then that enterprising India Inc, that had scripted India’s stupendous growth story when India opened up its economic doors, is today an embittered lot. The Government’s policies of reverting back to protectionism and red tapism is alarmingly reminiscent of the Socialist pre- liberalisation era. NALINI VIJAYARAGHAVAN, Thiruvananthapuram I am extremely surprised to read the following points in the article titled “No Business of the State”, May 28, 2012 issue in which the private sector has been praised at the expense of the public sector, without ascertaining facts: 1. It may be remembered that Coal India fuels 80 per cent of India’s power generation and has recently given a dividend of more than Rs 5,000 crore to the exchequer, which no private sector company is capable of doing. 2. It also has been mentioned in the article that “Zohra Chatterji, an additional secretary in the Ministry of Coal, ignored the instruction of India’s most powerful bureaucrat” and “did not comply with the orders to sign fuel supply agreements with power producers”. The fact of the matter is that it

was Zohra Chatterji who in fact complied with the presidential directive in her capacity as chairman, Coal India at the time and sent the approved fuel supply agreements to the subsidiary companies for signature. As such the facts are just the reverse of what is reported. 3. It is also incorrectly stated that Coal India has no problem of forestry and environment clearance or that it has received any communication which it has refused to act upon regarding blending of imported coal with domestic output. I hope you will set the record right for the information of readers. N. KUMAR, Director ( Technical), Coal India Limited INDIA TODAY responds: 1. The story gave due credit to Coal India’s financial performance by clearly saying that it is sitting on huge cash reserves of Rs 56,000 crore. This is, of course, because it is a monopoly. 2. The story said that Coal India under the acting chairmanship of Zohra Chatterji failed to comply with Principal Secretary to PM Pulok Chatterjee’s first order to sign fuel supply agreements before March 31, 2012. That fact is not disputed by your letter. It took a presidential directive to get the process moving. 3. The story acknowledges that Coal India has problems with environmental clearances. But in the view of experts, these claims are over- exaggerated. Sources in Government confirm that a suggestion to blend imported coal with domestic coal was made to Coal India. We, therefore, stand by our story.