1.86 lakh crore is the loss to exchequer in Coal Blocks Allocation Scam: CAG

As per the audit report of the Comptroller and Auditor General (CAG) of India, allocation of coal blocks without bidding has caused a huge loss of 1.86 lakh crore to the India’s exchequer.

As per the report, 57 coal blocks that were allocated to private companies during 2004-2009, offered them a windfall gain of Rs 1.86 lakh crore. The Prime Minister Manmohan Singh has also been brought under examination as he was holding the charge of Coal Ministry from 2006 to 2009. The CAG report also raised grievous allegations against the PMO which delayed the fair bidding process for coal blocks despite the clearance from Law and Justice Ministry.

Some of the major beneficiaries of the coal block allocations were Tata Group, Reliance Power, Jindal Power and Steel, Abhijit Group, Bhushan Group, Electro Steel, OP Jindal Group.

Over past 8 years, 150 coal blocks have been allocated by the govt. During this period Prime Minister Manmohan Singh, Shibu Soren and Prakash Jaiswal has been at the apex position in the Coal Ministry. The Rs 1.86 lakh rupees scam has surpassed the 1.7 lakh crore 2G scam, as the biggest scam in the history of India.

Month: Current Affairs - August, 2012