CoalMin’s weak guidelines led to BG lapses of Rs 311 cr: CAG
In its letter to the coal ministry on November 19, the CAG said that in the case of 15 coal blocks, the ministry allowed BGs worth Rs 311.81 crore to lapse. The letter added that the ministry failed to ensure timely renewal that could have penalised block owners who defaulted on assigned production commencement targets.
“The ministry may apprise the Public Accounts Committee (PAC) on the instances of lapse/non-renewal specifically linked to 15 blocks where BGs amounting to Rs 311.81 crore had lapsed and why were they allowed to lapse. The ministry may apprise the PAC as to who was responsible for framing ineffective guidelines for encashment of BGs till 2012 and what action has been taken for this lapse?” the CAG stated.
The statutory auditor added that the coal ministry in its reply to the PAC had stated that the BGs deductible could not be calculated and deducted as they were not linked to targets in case of allocations before 2007. In the same vein the ministry also stated that the inter-ministerial group (IMG) had recommended deduction of BGs in 14 cases.
The CAG asked whether these 14 cases were the same where BGs were linked to targets, and if so,
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