The government has dismissed the
Comptroller and Auditor General, CAG report estimating 1.86 lakh crore rupees gain to private firms in allocation of coal blocks as misplaced.
Addressing a press conference in New Delhi today Deputy Comptroller and Auditor General and Chairman of Audit Board, A K Patnaik said that the allocation of coal blocks during the period from 2004 to 2009 has pegged presumptive losses of 1.86 lakh crore rupees for 17.40 billion tonne of coal to the government . He, however said Coal India Limited and other Public Sector Companies were not included in the audit.
Talking of the recommendations made by the CAG, Mr Patnaik said Ministry of Coal should urgently work out the modalities to implement the procedure of allocation of coal blocks for captive mining through competitive bidding to bring objectivity and transparency in the allocation and for tapping of a part of benefit accruing to the allottees of captive coal blocks to public exchequer.
The report has also suggested evolving a system of giving incentives to encourage production performance from captive coal blocks and disincentives to discourage poor performance.
The report on Public Private Partnership in Indira Gandhi International Airport at New Delhi said that the Civil Aviation Ministry’s February, 2009 order allowing the promoters DIAL to levy Development Fees, DF, amounting to over 3,415 crore rupees was in contravention of the Agreement and laws governing civil aviation.
The Chairman of Audit Board said that the development fees being charged at the IGI Airport was not as per provisions of law. He also said that approval of the Ministry and later of AERA for levy of DF by DIAL was a post contractual benefit. Mr. Patnaik said the report also pointed out that the Civil Aviation Ministry and Airports Authority of India, on some occasions violated certain provisions of the transaction documents. The report says giving GMR Infrastructure -promoted DIAL, the option to extend the concession from 30 to 60 years was detrimental to public interest and the rights of first refusal also unduly favoured DIAL. Flaying post-bid concessions to Reliance Power, the CAG has said the Anil Ambani-led firm got undue benefit of 29,033 crore rupees
when the government allowed use of surplus coal from blocks allotted to Sasan power plant of Madhya Pradesh for its other projects. CAG in its report said subsequent to award of the 4,000 MW Sasan ultra mega power project to Reliance Power Limited, RPL, the government granted permission to the company to utilise the surplus coal from three mines attached to the projects for the group's Chitrangi project in Madhya Pradesh. This decision resulted in financial benefit of 29,033 crore rupees with a net present value of 11,852 crore rupees to the project developer RPL. Mr Patnaik added that CAG has also recommended that the bid evaluation process may be streamlined to ensure strict compliance of the qualifying criteria and adequate due diligence done in the selection of appropriate bidder.
