Tiger80 Posted March 22, 2012 Posted March 22, 2012 NEW DELHI: The CAG is at it again. About 16 months after it rocked the UPA government with its explosive report on allocation of 2G spectrum and licences, the Comptroller & Auditor General's draft report titled 'Performance Audit Of Coal Block Allocations' says the government has extended "undue benefits", totalling a mind-boggling Rs 10.67 lakh crore, to commercial entities by giving them 155 coal acreages without auction between 2004 and 2009. The beneficiaries include some 100 private companies, as well as some public sector units, in industries such as power, steel and cement. The CAG-estimated loss figure of Rs 10.67 lakh crore at March 31, 2011 prices is six times that of its highest presumptive loss figure of Rs 1.76 lakh crore for the 2G scam. This, it says, is actually a conservative estimate, since it takes into account prices for the lowest grade of coal, not the median grade. CAG says even by the price levels prevailing at the time of allocations, the estimate of loss would be over Rs 6.31 lakh crore. Here's how the auditor has calculated the "windfall gains". First, an estimate of the cost of production for each block was arrived at by taking into account the actual cost of production in a similar Coal India mine for the same year. Then the difference between CIL's sale price and cost of production was multiplied by 90% of the reserves in each block. The figure thus obtained was the windfall gain for that block. The reasoning behind taking 90% of the total reserves rather than the entire lot, according to CAG, is that "detailed exploration establishes reserves at a confidence level of 90%". The report points out that the coal ministry had maintained in 2004 that the chances of any allocatee not being able to recover this much from the reserves "would be, if at all, very remote". CAG has added that "the actual amount of gain to the allocatees may change depending upon the mining plan, cost of extraction of coal, market price of coal and quality". The 110-page draft report, a copy of which is with TOI, takes into account the coal ministry's views and, sources say, is as good as a final report. It is expected to be tabled in Parliament after the Union Budget is passed. Calculated on the basis of the 90% of coal reserves indicated in the geological reports for each block, the auditors have worked out a total of 33,169 million tonnes (MT). Industry sources say this would be enough to fuel over 150,000 mw of generation capacity-a little less than the country's current level-for 50 years. The report has listed both private entities and public utilities as beneficiaries of the alleged largesse. It says private firms cornered more than Rs 4.79 lakh crore of the giveaway, while around Rs 5.88 lakh crore went to government utilities. Significantly, most PSUs employ private miners to extract the coal. http://economictimes.indiatimes.com/news/politics/nation/government-lost-rs-10-7-lakh-crore-by-not-auctioning-coal-blocks-cag/articleshow/12363383.cms
surajmal Posted March 22, 2012 Posted March 22, 2012 Keep voting for these m'fers. No sympathy from me.
Sachin=GOD Posted March 22, 2012 Posted March 22, 2012 Govt is saying that if it had auctioned all this coal then the prices would have risen considerably and the public would have had to suffer. Without going into any details of this controversy, I tend to think that auctioning may not have been the best possible method in this case.
Tiger80 Posted March 22, 2012 Author Posted March 22, 2012 Govt is saying that if it had auctioned all this coal then the prices would have risen considerably and the public would have had to suffer. Without going into any details of this controversy' date=' I tend to think that auctioning may not have been the best possible method in this case.[/quote'] but it was UPA government that made policy of auctioning Coal blocks ,so why UPA formed a policy that would had kept coal prices high
Sachin=GOD Posted March 22, 2012 Posted March 22, 2012 CAG has denied the contents of the leaks Its saying that the contents are actually at a very early stage and its not even a draft.
ravishingravi Posted March 22, 2012 Posted March 22, 2012 10 LAKHS cr - < 10 % of 176 lakhs cr. Small money. Couldn't care less.
surajmal Posted March 22, 2012 Posted March 22, 2012 10 LAKHS cr - < 10 % of 176 lakhs cr. Small money. Couldn't care less. if you mean 2g scam amount that was about 1.76 lakh cr. 10 lakh cr is mind boggling amount (200 billion dollars !!!!!). If this government comes into power again, you will be hearing about trillion dollar scams. India is progressing indeed. :two_thumbs_up:
ravishingravi Posted March 22, 2012 Posted March 22, 2012 if you mean 2g scam amount that was about 1.76 lakh cr. 10 lakh cr is mind boggling amount (200 billion dollars !!!!!). If this government comes into power again, you will be hearing about trillion dollar scams. India is progressing indeed. :two_thumbs_up: Yeah I lost the plot there. Too many zeroes to keep in my little head.
Clarke Posted March 22, 2012 Posted March 22, 2012 Going by the regular reports of illegal mining & related crimes, this shouldn't be surprising. There's enough support for the mining mafia within the Central/State govts, whatever party might be in power.
adi B Posted March 22, 2012 Posted March 22, 2012 much more to come, any way the coal minister jaiswal should concentrate more on his work rather than making rahul the pm in midnight :headshake:
Sachin=GOD Posted March 26, 2012 Posted March 26, 2012 I got this msg today - "Kya aapke CoalGate mein Congress hai" :cantstop:
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