CAG says Rs2,39,000-cr lost on coal, airport and power
17 Aug 2012
The government has lost a total of around Rs2,39,000 in the allocation of coal blocks without bidding and the Delhi airport concession given to GMR and power projects, the Comptroller and Auditor General's (CAG) states in its reports tabled in Parliament today.
The CAG in its final report on the allocation of coal blocks says that the government opted to allocate 194 coal blocks involving 44 billion tonnes of coal at throwaway prices and on mere recommendations.
That too, when Prime Minister Manmohan Singh himself was in charge of the coal ministry, the report noted, although the CAG did not blame the PM for the losses.
Tata Group entities, Jindal Steel & Power, Anil Agarwal Group firms, Essar Group's power ventures, Adani Group, Arcelor Mittal and Lanco were the main beneficiaries of the process, CAG pointed out.
"Delay in introduction of the process of competitive bidding has rendered the existing process beneficial to the private companies. Audit has estimated financial gains to the tune of Rs1.86 lakh crore likely to accrue to private coal block allottees," CAG said in a report on allocation of coal blocks.
"A part of this financial gain could have accrued to the national exchequer by operationalising the decision taken years earlier to introduce competitive bidding for allocation of coal blocks," CAG said.
The CAG also rapped the civil aviation ministry for bungling on the public-private partnership for the Indira Gandhi International Airport. CAG said the 239 acres of land given to the GMR Group-owned Delhi International Airport (DIAL) for construction of the terminal on a Rs100 a year lease has a potential to give a return of Rs1,63,557 crore over a 60-year period.
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