Ummid Assistant

IDB scholarship forms available at Bhopal's Companion School

IGNOU's preparatory course for students desiring higher education

Welcome Guest! You are here: Home » National

Auction of coal mines could have fetched $37 bn more: Auditor

Friday August 17, 2012 05:55:57 PM, IANS

New Delhi: The Indian exchequer could have earned Rs.1.85 lakh crore ($37 billion) more if a competitive bidding process was followed in the award of coal blocks to private and government players, the official auditor has said in its report released Friday.

But the government has termed as erroneous the back-of-the-envelop calculation of the losses -- which nearly amounts to the country's budgeted income tax and customs mop up of Rs.1.95 lakh crore and Rs.1.86 lakh crore, respectively, for this fiscal.

The Comptroller and Auditor General of India (CAG), in its report tabled in parliament said the losses occurred because the process of bringing transparency in the award of coal blocks, which was to commence in June 2004, got delayed due to various reasons.

"In the meantime, 194 net coal blocks, with aggregate of 44,440 million tonnes, were allocated to different government and private parties up to March 31, 2011," said the much-awaited report, that has embarrassed the government once again.

"The government could have tapped part of this financial benefit by expediting decision on competitive biding for allocation of coal blocks," the report added, while observing that most allocations were made on the basis of recommendations from state governments.

"This is not just a scam, it is a case of murder and loot. We would like an answer from the prime minister," said Bharatiya Janata Party (BJP) spokesperson Rajiv Pratap Rudy. The report, though, does not indict Prime Minister Manmohan Singh or his office.

The report will now go to parliament's Public Accounts Committee, headed by BJP's senior leader Murli Manohar Joshi, for a thorough study. "In this government, there are scams in the skies, on the ground, and underground," Joshi said.

But Minister of State for Parliamentary Affairs V. Narayanasamy slammed the report and said the auditor was not following the mandate. "Evidence will be taken and ultimately result will come," he said, alluding that the government was still to be heard.

In the report, the auditor has also recommended immediate steps to allot mines through a competitive bidding process in a bid to bring about objectivity and transparency in the process and in the larger context of power for all this year.

The audit report also names 25 companies that were beneficiaries, including Essar Power, Jindal Steel and Power, Hindalco and Tata Power, DB Power, Adani Power, CESC, Monnet Ispat, Rungta Mines, Mukund and Tata Steel.

In a previous report tabled two years ago -- on the award of scarce telecom spectrum, or airwaves, to new private players in 2008 -- the official auditor had estimated the losses to the exchequer at Rs.1.76 lakh crore.

In its recommendations on how the government should in the future go about awarding captive coal mines to private and state-owned players, the auditor has suggested the setting up of an empowered group on the lines of the Foreign Investment Promotion Board.

This group, with representatives from nodal ministries of central and state governments, could act like a single-window mechanism to grant clearances for mining leases, forest clearance plan, environment management plan and land acquisition, says the auditor.

This, it said, was paramount since the need for electricity was crucial for the economic development of the country, as also in the context of the government's earlier declared objective of power to all by 2012.







Home | Top of the Page


Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS




More Headlines

Violent protests in UP against Assam-Myanmar violence

Plans afoot for wine festival near mosque site in Israel; Muslims outraged

Bulk SMS, MMS banned for 15 days

Chinese firm to send Spanish robot to moon

Time, CNN revoke Fareed Zakaria's suspension

'US presidential polls among world's worst'

Plea in SC seeks action against Mamata

Mumbai pins hopes on 'artificial' rains

Situation vacant for chauffeur worth the Royals

Nine militants killed in Pakistan air base attack

Shoaib Iqbal's plea on Akbarabadi mosque challenged

Don't leave Bangalore, dear Assamese friends: appeal Muslim leaders

Panicky Assamese leaving Maharashtra


Top Stories

Parties unite for northeast, PM assures safety

MPs cutting across party lines Friday spoke as one in support of people from the northeast with Prime Minister Manmohan Singh  »

Don't leave Bangalore, dear Assamese friends: appeal Muslim leaders

Panic subsides in Karnataka, people flee Maharashtra

Karnataka CM assures protection to northeast students


  Most Read

Time, CNN revoke Fareed Zakaria's suspension

Celebrated Indian American journalist Fareed Zakaria, who was suspended by Time and CNN last week after he apologised for plagiarizing a paragraph from the New Yorker for his Time column  »

Shoaib Iqbal's plea on Akbarabadi mosque challenged

A political outfit Thursday urged the Delhi High Court to dismiss legislator Shoaib Iqbal's plea seeking restrictions on the demolition of  »


  News Pick

30 students of Maulana Mujaddidi's Crescent Academy clear IAS prelims

Thirty students Of Crescent Academy have successfully cleared the Prelim Exam (first stage) of IAS Examination, 2012, the results of which were announced recently. The credit of this success  »

Israeli aggression against Al-Aqsa Mosque condemned

The Palestinian cabinet condemned Israeli schemes targeting Al-Aqsa Mosque, Islam’s third holy mosque, whether through digging underneath it or through daily provocative tours by Israeli soldiers in uniform and hard-line settlers  »

German city grants Muslims Islamic holidays

Hamburg has become Germany’s first city to recognize Islamic holidays, a move meant to encourage the integration of a religious minority often vilified by opponents of immigration. Muslim employees and  »

Makkah Summit: OIC suspends Syria, to take Myanmar case to UN

The Organization of Islamic Cooperation suspended Syria’s membership, citing President Bashar Assad’s violent suppression of the Syrian revolt, and also decided to take  »

Bloody violence against Muslims due to division: King Abdullah

Muslim leaders arrive in Saudi Arabia for Makkah Summit


Picture of the Day

Iranian President Mahmoud Ahmadinejad, who has come for the summit, visits the Prophet’s Mosque in Madinah on Monday.

(Photo: SPA)



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant



Science & Technology



About us




Government Schemes










Contact us




    Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2012 Awaz Multimedia & Publications. All rights reserved.