PAC adopts CAG reports on coal, power and aviation
Posted on: 04:57 PM IST Aug 23, 2012
New Delhi: The Public Accounts Committee on Thursday adopted the Comptroller and Auditor General (CAG) reports on coal blocks allocation, power and Delhi airport. The three reports were tabled in Parliament for discussion last week.
The CAG report on coal had put the presumptive loss to the government at Rs 1.86 lakh crore, which was much bigger than the 2G spectrum allocation scam.
The report had also raised questions on the role of Prime Minister Manmohan Singh as allegedly 44 billion tonnes of coal were allotted at throwaway prices during his stint as a Coal Minister.
Whereas, the CAG report on power had accused the government of favouritism and benefitting companies like Tata and Reliance Power.
The CAG report on Ultra Mega Power Projects (UMPP) had said that Reliance Power benefited in the Sasan Ultra Mega Power Project, the country's first domestic, coal-based project.
It said that the government gave the company permission to use excess coal from three blocks allocated that had been allocated for the power project and that this was not only a violation of the bidding process but also benefited Reliance Power.
Reliance Power had reportedly said at the time of the award of contract that since it would be able to use 20 million tonnes from the two blocks, there would be sufficient coal for the Sasan UMPP.
Meanwhile, the CAG report on the privatisation of Delhi airport questioned the role of the then Civil Aviation minister, Praful Patel, for favouring GMR that received undue benefits worth Rs 3,400 crore.
The CAG has put the amount at Rs 3750 crore.
The report also blamed the Airport Authority of India for acting against the interests of the government.