CAG reports say govt gave a whopping Rs 3 lakh crore of 'undue benefits' to private cos

A A

Agencies: New Delhi, Aug 17 2012, 13:52 IST

Already under attack over various scams, government today faced a fusillade from the CAG which has estimated "undue benefits" of over Rs 3.06 lakh crore to private parties in coal blocks allotment without bidding, Delhi airport development and diversion of coal to a power project.

The CAG attack came when three of its reports on coal allocation, development of Delhi airport by GMR-led DIAL and ultra mega power project of Reliance Power Ltd were tabled in Parliament today.

The Comptroller and Auditor General (CAG), however, brought down the estimated loss in the allocation of 142 coal blocks since July 2004 from Rs 10.7 lakh crore in the draft report to over Rs 1.85 lakh crore being the benefit to private allottees.

In the 'scam' CAG has estimated a potential earning capacity of Rs 1,63,557 crore to DIAL when it was given Delhi airport land on a concessional lease.

The Prime Minister, who held the coal portfolio for a considerable time during the period also escaped any adverse notice of the official auditor and the blame fell on the Screening Committee consisting of officials for the allocation "which lacked transparency, objectivity and competition".

The beneficiaries of coal block allocation included Essar Group, Jindal, Adani, ArcelorMittal and Tata Steel.

The Opposition was quick to capitalise on the CAG reports with BJP demanding the resignation of Prime Minister Manmohan Singh taking "moral, political and personal" responsibility for the wrongful loss due to coal block allocations.

However the Government rubbished the reports with Coal Minister Sriprakash Jaiswal saying they were not

... contd.

Ads by Google

Single Page Format

1 | 2 | 3 | Next

2G: 18 Kolkata firms under CBDT lens Eavesdropper24 CBI officers get police medals CAG reports point to Rs 3 lakh cr 'scam'

Previous Story HDFC to pay 1 lakh for damages Next Story More market reforms in offing: FM

Reader's Comments (16)| Post a Comment

misperception

Balakrishnan | 17-Aug-2012Reply | Forward

if this is the way the CAG is computing loss and gain then we are all losers in one way or another. take it as simple as this. I sold my property for x amount few years back. Now that property is being sold for yx amount. does it mean i lost y times? think about what benefit i gained with that deal at that time. These media is misleading us by telling negatives.

modern kings..........congress.......

kumar pavan | 17-Aug-2012Reply | Forward

we shouldn't ask them questions...they got mandate in elections. they got 37% votes of the vote cast and will rule for eternity...may be. because they are the only people concerned about India's unity development and rest all are fundamentalists and not at all suited for governance. it got into their heads. that's the dangerous thing. if this continues the idea of India of will disappear. only congress under the modern kings dynasty will disintegrate India by their bad governance. lets save the country and educate people