CAG Reports

The Comptroller and Auditor General has said the government extended windfall gains of Rs 1.86 lakh crore to private players by distributing coal blocks without bidding over the years. The CAG’s report has escalated the UPA’s fight with the opposition over corruption amid the latter’s calls for Prime Minister Manmohan Singh’s resignation.
The CAG’s report was tabled in Parliament on Friday along with the auditor’s findings on similar undue benefits for the promoters of Delhi International Airport Ltd and the Sasan ultra-mega power project in Madhya Pradesh.
The Coalgate report dwarfed the other two both because of the scale of money involved and the fact that it covers allocations during the period when the PM was in charge of the coal ministry. “The PM is morally, politically and personally responsible for this wrongful loss. He must introspect on accepting the moral responsibility for this loss and quitting his office,” BJP leader Arun Jaitley said.
The CAG’s draft report saying private and public sector companies made gains of Rs 10.67 lakh crore by getting coal blocks without auction. Even so, the final estimate of Rs 1.86 lakh crore surpasses the CAG’s estimate of loss from the 2G scam.

The Government extended windfall gains of 1.86 lakh cr to pvt companies by giving them 57 coal mines without auction between 2005 and 2009
Gains measured on basis of difference between average cost of production and average 2010-11 sale price of all grades of coal
Government set cut-off date of June 28, 2004 to bring competitive bidding, but kept awarding blocks through screening committee till 2009
Some of the gains could have come to govt had it not delayed competitive bidding for years

Reliance Power gained over Rs 29,000cr by getting permission to use surplus coal from mines assigned to its Sasan project for its Chittrangi plant
This post-bid concession “not only vitiated the bidding process but also resulted in undue benefit” to the company
In Oct 2006, power ministry recommended that Sasan would need additional coal block; it was based on
insufficient data

4,799 acres of land leased out to DIAL for Rs 100 per annum; 5% of this, or 239.95 acres, allowed for commercial use. Over 58 yrs, earning potential of this 5% is 163,557cr & DIAL’s share 88,337cr
Current value of this 5% land is 24,000cr. This too given to DIAL as part of 4,608.9 acres for lease of 100 per annum
Allowing development fee of 200 for domestic and 1,300 for international passengers gave DIAL undue benefit of 3,415cr