Ashok Chawla Committee

The high-powered committee, led by Ashok Chawla, was entrusted with the task of formulating a roadmap for the efficient and transparent distribution of resources, including spectrum. The committee’s scope encompassed eight key natural resources. The recommendations made by the committee received significant acceptance from the Manmohan Singh-led central government.

Key Suggestions of the Committee:

1. Spectrum: The committee proposed that spectrum should be allocated to companies solely through market-related processes, such as auctions. It recommended the separation of spectrum allocation from the issuance of licenses, allowing companies to trade spectrum freely. Additionally, the committee called for an integrated legislative framework for optimal management of spectrum across both commercial and non-commercial frequency bands.
2. Land: To enhance transparency in land allocation, the committee suggested the creation of a public database of government land and its allocation. It recommended the use of e-auctions or competitive bidding for land allocation. The committee also proposed regularly updating land rates in line with market rates to generate higher income for the government in the form of ground rent.
3. Forests: The committee advocated for the establishment of a scientific public database for forest clearances, ensuring transparency in decision-making. It urged state forest departments to strengthen their capacities to avoid delays in forest clearances. However, the recommendations did not address the rights of forest dwellers and primarily aimed to expedite the forest clearance process. The committee also recommended the de-reservation and diversion of degraded forests for appropriate utilization.
4. Natural Gas: Market-based pricing for natural gas was recommended by the committee, with the price of imported liquefied natural gas (LNG) serving as a cap. However, the committee emphasized that the government should set prices for natural gas used in urea production, considering the critical needs of the agriculture sector and food security.
5. Petroleum: The committee praised the New Exploration Licensing Policy for its transparency and called for all blocks to be registered in a national registry accessible to the public. This step aimed to ensure greater transparency in the natural resources sector.
6. Coal: Legal hurdles to ending Coal India’s monopoly were highlighted in the committee’s report. To address this, the committee recommended allowing independent mining companies to supply coal to end-users. Furthermore, the committee suggested the establishment of a trading platform for imported and surplus coal.
7. Minerals: Moving away from the first-come, first-served allocation method, the committee proposed an auction-based approach for mineral allocations. It also suggested the adoption of market-based pricing for metals, minerals, and fossil fuels. Additionally, the committee emphasized the development of areas affected by mining activities, allocating a significant portion of revenue for comprehensive regional development.
8. Water: The committee stressed the need for a comprehensive national legislation on water in India. It highlighted the lack of an integrated system for water management and called for an umbrella legislation to regulate water use. However, the committee’s report did not specifically address the allocation of water for industrial purposes, leaving that aspect unmentioned.

By emphasizing market-based processes, transparency, and competitive mechanisms, the committee aimed to enhance the utilization and pricing of natural resources while addressing gaps and inefficiencies. The report’s suggestions on spectrum management, land allocation, forest clearances, natural gas pricing, petroleum exploration, coal supply, mineral allocation, and water management provided a comprehensive framework for reforms in these sectors.

Implementing the accepted recommendations of the Ashok Chawla Committee will require the collective efforts of individual ministries to ensure timely and effective execution. The committee’s work has set a foundation for improving transparency, effectiveness, and sustainability in the allocation of natural resources, contributing to the overall development and growth of India’s economy.

Month: Current Affairs - May, 2012