Thursday 25 Apr 2024

Cess unpaid, but coal transportation still gets a push

| NOVEMBER 25, 2020, 12:15 AM IST

Why was the government soft-pedalling on the issue of coal/coke transportation cess recovery from companies like JSW Steel Limited, and why is it still championing their cause when they have point-blank refused to pay the dues to the State?

JSW Steel imported 31.26 million metric tonnes from the financial year 2014 to July 2018 and together with its subsidiary JSW Energy owed Rs 169 crore as cess. They have been served Demand Notices dated November 9 along with 17 other companies to pay the dues within 15 days or told to face the consequences under the relevant Act. JSW, on the contrary, has contested the levy of cess and has moved the High Court. Interestingly, the recovery data sheet generated in November this year shows a collective outstanding cess liability of over Rs 208 crore. While JSW tops the list of 19 defaulters, there are also names of Sesa, Vedanta, BMM Ispat, Adani Ent Ltd, Ultra Tech, Gujarat NRE and others.


There is no reason why these companies are being given the long rope with the State choosing to initiate recovery proceedings for coal transported way back between 2014 and 2018. In the case of casinos, the government held its ground, arguing that there was massive revenue to the exchequer when the fiscal situation was in the doldrums. What is the defence for companies which are using Goa as a transit point for coal and refusing to pay the State their rightful dues?

Chief Minister Pramod Sawant's move to proceed with cess recovery notices must be appreciated, much against the backdrop of his government facing accusations of extending tacit support to corporate giants like JSW and Adani. However, it baffles the mind why the government of the day is leaving no stone unturned to fast-track double-tracking when the Sagarmala project document primarily attributes it to enhancing coal transportation.


By refusing to pay the liable cess, and yet carrying on their coal transportation unhindered, a mockery is being made of the system by corporates perching themselves above all protocols. The State government has only played a puppet in the hands of steel companies by not only allowing them to carry on their business but also permitting them expansion against an unsettled liability. The argument of conceding to the demands of the steel lobby on the premise that Goa will face power blackouts shortly is hollow and a meek surrender.

How come the same yardstick is not applied to the common man who defaults on payments? Power connections and water supply are cut off at short notice, and helpless citizens are made to run from pillar to post. In the case of these companies, the government failed to act all this while. It even endured an economic crisis borrowing hundreds of crores every month yet refrained from pushing for recovery.

It's high time the government pull the chain on all double-tracking works and proceed with recovery on an immediate basis.



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