Body on natural resources allocation?
Even though Thursday’s crucial Supreme Court observation on allocation of natural resources may have come as a shot in the arm for the UPA government, it is now toying with the idea of constituting a new body which will be mandated to ensure that allocation of natural resources made to both private and government organisations are in strict compliance with rules and regulation.
Highly-placed government sources said the move is essentially aimed at bringing in greater transparency in allocation of cash-rich natural resources. Thus, this “new watchdog” will track all allocations of natural resources made either through an auction, bidding or even a screening committee and ensure that no financial loss is caused to the public exchequer and at the same time the allocation does not result in a windfall gain to private entities.
This new outfit, sources added, will be over and above the existing regulators in any sector like coal or the Trai in telecom.
The proposed outfit will also closely examine that those private or government outfits, allotted the natural resource, start utilising it within a stipulated timeframe rather than delaying their projects to increase the market cap of the resource and then selling it to a third party at a much higher price.
This modus operandi was witnessed in both the 2G spectrum and coal allocation scams.
Government sources said though the Supreme Court observation, which came in context of presidential reference on the 2G scam, vindicates the government’s stand but it was in no mood to take any chances with future allocation of resources.
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