Government lost Rs10.67 lakh crore on cheap coal block sale: CAG
22 Mar 2012
The Comptroller and Auditor General of India has prepared a fresh nightmare for the government, still reeling from the after-effects of the 2G spectrum scandal. A draft report from the CAG says the government lost Rs10.67 lakh crore by allocating coal blocks without auction between 2004 and 2009.
According to The Times of India, a draft report titled 'Performance audit of coal block allocations' says the government extended "undue benefits" to commercial entities by giving them 155 coal blocks without auction.
The beneficiaries include some 100 private companies, as well as some public sector units, in sectors such as power, steel and cement, it says.
The 110-page draft report is expected to be tabled in Parliament after the budget is passed. It is certain to raise a storm, as the loss of Rs1.76 crore from the cheap sale of 2G spectrum pales in comparison to the Rs10.76 crore estimated for what could well become known as the 'coal scam'.
The Bharatiya Janata Party and the Samajwadi Party have already said they want suspension of Question Hour over the CAG report.
Coal minister Sriprakash Jaiswal refused to comment.
"I can't comment on the basis on any media reports. If we receive the CAG report, we will analyse it and then take action. I have been the coal minister only in the UPA II (second UPA government) and during this time no coal block has been given," Jaiswal said.
The CAG report says private firms cornered more than Rs4.79 lakh crore of the give-away, while around Rs5.88 lakh crore was grabbed by government utilities. Significantly, most public sector undertakings employ private miners to extract coal.
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