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CAG reports tabled in Parliament, indict govt on coal block allocation, mega power projects, Delhi airport concession

In its report on coal block allocation CAG says bidding process was vitiated by allowing Reliance Power to use excess coal from three blocks allocated to Sasan project.

BT Online Bureau   New Delhi     Last Updated: August 17, 2012  | 14:09 IST

The Comptroller and Auditor General's (CAG) reports on the allocation of coal blocks without bidding, the Delhi airport concession given to the GMR Group and the diversion of coal from ultra-mega power projects were tabled in Parliament on Friday.

CAG in its report on coal block allocation said bidding process was vitiated by allowing Reliance Power to use excess coal from three blocks allocated to Sasan project. The report has pegged the loss caused due to allocation of coal blocks at Rs 1.86 lakh crore.

If reports are to be beliweved, CAG's in its report has also concluded that competitive bidding process should have been adopted to allot the coal mines as recommended by the coal secretary. However, the government ignored his view and allocated the scarce resource on the basis of an opaque policy which unduly benefited private firms to the tune of Rs 1.86 lakh crore.

The leaked CAG draft reports have already embarrassed the Manmohan Singh government.

The report also slams levy of development fee on passengers at Delhi Airport, says it vitiated sanctity of bidding process. Delhi International Airport Private Limited (DIAL) to get undue benefit of Rs 3,415.25 cr from levy of development fee on passengers at Delhi Airport.


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