CAG reports on coal, power projects, Delhi airport tabled; Government faces Opposition fire

New Delhi: All three CAG reports on coal, power and aviation were tabled in the Rajya Sabha on Friday. The report on coal blocks allocations puts the presumptive loss to the Government at Rs 1.86 lakh crore, which is much bigger and greater than the 2G scam itself.

CNN-IBN has accessed the final draft of the CAG report on coal block allocations that also raises questions on the role of the Prime Minister, who allegedly allotted 44 billion tonnes of coal at throwaway prices during his stint as a Coal Minister.

Meanwhile, the CAG report on Power accuses the government of favouritism and benefiting companies like Tata and Reliance Power.

The CAG report on the privatisation of Delhi airport questions the role of the then Civil Aviation minister, Praful Patel for favouring GMR that received undue benefits worth Rs 3,400 crore.

The government could find itself powerless in the face of an Opposition attack over the potentially damaging CAG report.

CAG report on coal: 'Scam bigger than 2G'

The CAG report on coal finds the scam bigger than the 2G scam. According to the report, the coal blocks allocations caused the exchequer a loss of Rs 1.86 lakh crore, much bigger than what the 2G scam cost.

The report said that the estimate was only on account of private players and that the loss caused by PSUs would be audited separately.

Nearly 44 billion tonnes of coal were given at throwaway prices. Around 194 coal blocks were allotted on mere recommendation, the report adds.

The allotments were made when Prime Minister Manmohan Singh was the coal minister. The PM reportedly ignored the then coal secretary's advice to auction coal blocks.

The final CAG report is, however, silent on the PMO's role in scam. The draft CAG report had heavily criticised the PMO in connection with the scam which mainly benefited companies like Tata, Birla and Jindal.

The Opposition is planning to nail PM on the basis of the CAG report.

CAG report on Delhi airport: 'Govt favoured GMR, caused losses'

The CAG report on Aviation said that the decision by the Civil Aviation Ministry to award the contract for the Delhi airport to GMR caused humoungous losses to the tax payers and passengers.

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.

CAG report on power projects: 'Tata, Reliance favoured'

The CAG report on Ultra Mega Power Projects (UMPP) on Friday 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.

The report said that the allocation of the third coal block - Chhatrasal - must be checked to ensure fair play.

"Audit has estimated the financial benefit that will accrue to the project developer on the basis of comparison of tariff of Sasan project with that of Chitrangi (the third coal block). The overall financial benefit to Reliance Power due to impact of difference in tariff works out Rs 29,033 crore with a net present value of Rs 11,852 crore," the report said.

BJP demands reply

The Bharatiya Janata Party (BJP) on Friday slammed Prime Minister Manmohan Singh for the alleged irregularities pointed out by the Comptroller and Auditor General (CAG) report in the allocation of coal blocks between 2006 and 2009.

"The CAG has pointed out a loss of Rs 1.86 lakh crore to the exchequer. The BJP has been raising the issue for quite some time now," BJP leader Rajiv Pratap Rudy said.

"This is not just a scam, it's a case of murder and loot. We would like an answer from the prime minister on charges made by the CAG," Rudy said minutes after the report was tabled in the Rajya Sabha.

Reliance Power reacts

Reliance Power on Friday reacted to the CAG report on UMPPs or Ultra Mega Power Projects that said that the company had benefited in the Sasan Ultra Mega Power Project, the country's first domestic, coal-based project.

"CAG's observations don't factor in the looming coal crunch," it said, adding that it got surplus coal only via use of advance technology and that the Empowered Group of Ministers (EGoM) ratified allocation of coal blocks to the company.

"The decision to permit use of surplus coal from Sasan UMPP Coal Blocks for power generation has been ratified by EGOM on two occasions (once in 2008 and again in 2012). CAG's recommendation of reviewing allocation of coal blocks of Sasan UMPP has already been implemented by Government of India," it said.