Look before you leap

Like telecom, another sector is at risk of heading for a logjam. And this time, the consequences could be far more severe. On Monday, the Central Bureau of Investigation (CBI) signalled that it intends to proceed on a recommendation from the Central Vigilance Commission (CVC) and investigate all allotments of captive coal blocks dating back to 1993. That bears all the symptoms of a witch hunt. If the experience with telecom is any example, then we have to fear the worst and all the more since coal is a very important fuel. Any dislocation has the potential to have a cascading impact on sectors such as power, iron and steel, and fertilizer. At the moment, the country is facing a steep infrastructure deficit. A prolonged investigation would only further cramp activity in infrastructure. Again, at the moment, due to a sharp slowdown, it is not pinching. That may not be the case tomorrow.