India's climate of corruption, sale of massive coal resources to crony capitalists alleged, Indian parliament in chaos

$33 billion may be lost via India's "deeply troubled coal sector."

8/22/12, "Suspected "Coalgate" corruption paralyses Indian parliament," Reuters

"India's Central Bureau of Investigation is probing possible corruption in the sale of coal concessions to private companies, it said on Wednesday, as the affair dubbed "coalgate" caused uproar in parliament, paralysing it for a second day in a row.

The CBI is investigating suspected collusion between state officials and private companies in underpriced sales of coalfields that the state auditor said last week may have cost the exchequer as much as $33 billion in lost revenues.

The agency would not say whether it had uncovered any irregularities, but both its investigation and the state auditor's report will likely raise fresh questions about "crony capitalism" as well as the government's involvement in the deeply troubled coal sector.

Asia's third-largest economy relies on coal for two-thirds of its power generation but despite having one of the world's largest proven coal reserves there is a growing gap between demand and supply, which critics blame on state-run Coal India's failure to boost output.

There were rowdy scenes in both houses of parliament as opposition lawmakers, shouting and shaking their fists, demanded the resignation of Prime Minister Manmohan Singh, who was coal minister between 2006-2009, when many of the sales occurred."...

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