This was confirmed from the fact that all the bidders for this mine had mainly steel plants as the specified end use plants seups. Many firms were also found to be squatting on blocks for years on end. The cag report is based on few aspect of the coal allocation. The report contains significant results of the compliance audit of financial.
However, this was to be done via competitive bidding. How big is the coal blocks scam in india freepress. As a result, the windfall gain estimate is reduced to inr1. Update on 26032012 coal block allotment scam in india we have got our hands on the report of the cag office conducting the performance audit of the coal block allocation pdf, 15 mb which turns out to be a mother of all scams in india.
The case pertains to irregularities in the allocation of moira and madhujore north and south coal blocks in west bengal to vmpl. Cag report on coal may not dim prospects of power utilities the cag report naming top biz houses among alleged recipients of state generosity may well turn out to be more of a sentimental dampener for power utilities. Cag performance audit summary on coal blocks prsindia. Metals and mining the final cag report, compared to cags draft report, has trimmed the number of mines with windfall gains from 66 to 57 with 55% reduction in coal reserves. Jun 18, 2018 coal indias pension fund, which is facing a funds crunch that has delayed payments to about 5 lakh retirees in june, is in poor health because of gross mismanagement and blatant violation of investment norms, the comptroller and auditor general of india had pointed out in its last report on the matter. The interminister group imc has recommended deallocation of 4 coal block. The report said the ministry of coal should urgently go forward with competitive bidding for captive coal blocks mining. Coal indias pension fund, which is facing a funds crunch that has delayed payments to about 5 lakh retirees in june, is in poor health because of gross mismanagement and blatant violation of investment norms, the comptroller and auditor general of india had pointed out in its last report on the matter. Following cag report, the supreme court declared all coal block allocations since 1993 illegal. Cag report on coal block allocation pdf allocation of coal blocks and augmentation of coal production by coal india limited.
Apart from the former prime minister, a former chief minister, an mp, and two former coal secretaries are among those named as accused in the alleged coal blocks scam. Preface iii executive summary v to x chapter 1 introduction 1. The government had claimed that eauctions had fetched almost rs 2 lakh crore on award of just 33 of these blocks which were allocated. The report contains significant results of the compliance audit of financial transactions of the ministriesdepartments of the union government and their. But the government chose to take another route and avoided competitive bidding, the cag report said. Cag performance audit on the allocation of coal blocks. Over the course of 2012, however, the question of corruption has come to dominate the discussion. The consultant, according to the report, also played a big role in equity stake of the developers on spvs from 51 per cent to 26 per cent.
Comptroller and auditor general of india cag report followed by the supreme court verdict in 2014 that overturned the allocation of all coal mines barring a few allocated after 1993. Political chaos over cag reports is catalysing reform in. Coal mining firms that present a fait accompli to justify mining in areas for which clearances are yet to be granted may end up losing the coal blocks allocated to. Is the chopper deal scam another bofors in the making. The cag report on coal blocks indicates how governmentsirrespective of political denomination have been keen to hold on to discretionary powers in allocating natural resources. Report of the comptroller and auditor general of india on assessment of environmental impact due to mining activities and its mitigation in coal india limited and its subsidiaries for the year ended march 2018 union government commercial ministry of coal report no. The cag report on coal block allocations between 2006 and 2009 has been tabled in parliament today and the bjp has said it is ready. The delay in allocation of the lohara west coal block will just limit a further upside. The central point of the cag report that showed improper allocation was that the government had the authority to allocate the coal blocks. Cag report points the finger at manmohan for discrepancies. Cag conducted the audit with a very specific mandate. Draft performance audit, allocation of coal blocks.
Financial% 20resolution%20bill,%202017financial%20resolution%20bill,%202017. The comptroller and auditor general cag of india is an authority, established by article 148 of the constitution of india, which audits all receipts and expenditure of the government of india and the state governments, including those of bodies and authorities substantially financed by the government. While the initial cag report suggested that coal blocks could have been. Sep 07, 2012 the pac, chaired by bjp leader murli manohar joshi, has decided to examine the government auditors report on coal block allocations, along with three other latest reports of the official auditor cag. Like cags earlier report on the allocation of 2g spectrum to telecommunications companies, this cag audit on coal blocks allocations marked a shift from. The company was allocated these coal mines since it was the lowest bidder for the sassan ultra mega power project at rs 1.
The standing committee submitted its report on ig february 2009 to the parliament and made certain recommendations. Excoal secretary, 4 others convicted a delhi court on friday convicted former coal secretary hc gupta and four others for allegedly indulging in corruption and hatching a criminal conspiracy for allocation of a coal block in. Cag performance audit summary allocation of coal blocks and augmentation of coal production the comptroller and auditor general cag released a performance audit of allocation of coal blocks and augmentation of coal production on august 17, 2012. The low production was due to inadequate drilling capacities, backlog in overburden removal, mismatch between excavation and transportation capacities, low availability and underutilisation of heavy earth moving machinery hemm etc. In the intervening period, 194 coal blocks with geological reserves of 44,440 million to nnes were allocated to private and government parties until march 31, 2011. The draft report notes how the standing committee of the coal ministry had said, while approving the mining plan for the chatrasal inthat there oh no justification for allocation of the chatrasal block for teport sasan umpp, but the mining plan is being approved in view of the need to step up coal production. Latest and breaking news on cag report on coal blocks allocation. The cag report on ultra mega power projects umpp on friday said that reliance power and tata benefited in the sasan ultra.
All hell seemed to have broken loose when the cag released its audit report on the allocation of coal blocks made between 2004 and 2010. The cag final report tabled in parliament put the figure at. At the initial report of cag only said that the blocks of coal could have been allocated with more efficiency and the government could have earned more profit. Some of the main findings and recommendations of the report are highlighted below. Making sense of coal block allocation scam and cag report. Further, washery grade coal is to be washed in a washery for use in a steel plant. Healthcare in india is unaffordable for most people. The draft report said though the issue of usage of surplus coal is defined in the guidelines of the coal ministry and forms a part of the bid documents, the allocation um. Chapter 4 allocation of captive coal blocks pdf file that. Click here for pdf version of a graphic on coal blocks allocation. Annual reports ministry of coal, government of india. Report of the comptroller and auditor general of india. The cag is also the external auditor of governmentowned corporations and. The cag report on ultra mega power projects was tabled in parliament today.
Explore cag report on coal blocks allocation profile at times of india for photos. Aug 20, 2012 reliance power, which has been named in the report, plans to use surplus coal from the coal blocks allocated to its sasan project for its valueaccretive 3,960 mw chitrangi project in madhya pradesh. Here is the prime ministers statement in parliament on the cag report on allocation of coal blocks. Since the developer had committed that it would be able to source 20 million rrport from the two blocks there would be adequate coal to feed the sasan umpp. According to the original bidding norms, coal meant for one umpp could not be. This is the official website of coal ministry, government of india. Post haste, the government promulgated the coal mines special provisions act, 2015, and also cleared the deck for the public sector. The cag report estimated that the coal block giveaways had cost the exchequer. Cag performance audit on the allocation of coal blocks prsindia. Annual report 201718 ministry of coal, government of india. I seek the indulgence of the house to make a statement on issues regarding coal. Oct 29, 2018 final cag report on coal block allocation. According to union coal minister the policy which adopted for coal allocation blocks was not faulty.
Prime ministers statement on cag coal block allocation report. Efforts of the moc to increase production by dereservation of 48 coal blocks of cil and allocating the same to. Cag slams government over ultra mega power projects. The report finds that the benefit to private allottees has been estimated at rs 1. Cag performance audit on the allocation of coal blocks page 36. While the initial cag report suggested that coal blocks could have been allocated more efficiently, resulting in more revenue to the government, at no point did it suggest that corruption was involved in the allocation of coal. The honble mos coal held a meeting on 10 august 2009 with the state ministers of mining and geology of coal and lignite bearing states. Further, though the government of india goi has notified certain sectors which may undertake captive mining of coal, the process of allocation of coal mines. The pac, chaired by bjp leader murli manohar joshi, has decided to examine the government auditors report on coal block allocations, along with three other latest reports of the official auditor cag. Cag report on coal block allocation epub pdfin website. Nov 16, 2018 in wake of the controversy generated by the cag report the government of india goi is looking to cancel likely up oh 58 captive coal block allocations for the failure by the allottees to meet repprt for starting coal production a list of captive coal blocks facing cancellation is attached. Allocation of coal blocks and augmentation of coal production by coal india limited. Kgdwn983 block for the financial year 2012 and 2014 14. Panel seeks clarification from power ministry on cag report.
The report of the comptroller and auditor general of india cag on coal block allotment to. Jul 06, 2019 the eight core industries output grew 3. Manmohan singh and sonia gandhi led congress government is of rs 1. Coal is the most important indigenous source of energy for indian economy with a geological reserve of 2,85,863 million tonne and more than half of the current commercial energy is met by coal. Cag report on coal may not dim prospects of power utilities. Coal block allocations have become a matter of heated debate since august 2012, when the cag report on the allocation of coal blocks became public, which maintained that the allocations have led to a possible loss to the government to the tune of about rs. The final report of the comptroller and auditor general of india, which states that there was a likely gain of rs 22 mar an initial audit report estimating rs lakh crore loss to the exchequer on account of allotment of coal blocks during to without. Aug 17, 2012 the cag report on coal block allocations between 2006 and 2009 has been tabled in parliament today and the bjp has said it is ready to target the government everyday on the alleged. Power ministry wants coal block allottees to sign ppas. The report states that the government could have tapped some of this. Union coal minister saipradad jaiswal along with upa leaders rejected the cag report. The main findings and recommendations are highlighted below. The draft report, stretching to 110 pagesfar more detailed and containing more explosive allegations than the toneddown final report of some 50.
Comptroller and auditor general of india wikipedia. Is indias ministry of coal effective in supporting coal production. You can find information related tenders, notices, latest updates pertaining to ministry of coal, government of india. Coal allocation scam or coalgate is a major political scandal concerning the indian. Coalgate explodes the draft report overview the cag report is a performance audit focusing on the allocation of coal blocks and the performance of coal india in the 200509 period. The cag report on ultra mega power projects was tabled in parliament. Full text of the coal block scam is available here for ready reference, preface of the cag report download pdf executive summary download pdf this summary is sufficient for most citizens. Govt to place views on coal blocks before pac by sept 14. Despite clear directions of ministry of coal in may 2007, coal mines provident.
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