The scam-battered UPA Government once again found itself in the eye of a storm over allocation of natural resources.
Leaked reports of a draft by the Comptroller and Auditor General (CAG) pointed to an alleged Rs 10.7-lakh crore notional loss to the exchequer on coal block allocations, prompting an Opposition outcry.
The Opposition is on the hunt as the Coal Ministry during this period of controversy was under the Prime Minister, Dr Manmohan Singh.
In what is being interpreted as an effort at damage control, an official statement from the Prime Minister's Office quoted a letter sent by CAG terming the inferences drawn from the draft report as misleading.
The Government auditors report is understood to have said that allocation of 155 coal acreages between 2004 and 2009 to about 100 companies resulted in a notional loss of Rs 10.7-lakh crore to the exchequer.
Further, the CAG-estimated loss figure at March 31, 2011 prices is six times that of its highest presumptive loss figure of Rs 1,76,000 crore for the 2G scam.
The report names companies such as Jindal Steel and Power as beneficiaries. Other major beneficiaries include Strategy Energy Tech Systems, a joint venture between the Tata Group and South Africa's Sasol.
The CAG has said in the letter to the Prime Minister that “In the extant case the details being brought out were observations which are under discussion at a very preliminary stage and do not even constitute our pre-final draft and, hence, are exceedingly misleading.”
“…Pursuant to clarification provided by the Ministry in exit conferences held on February 9 and March 9, we have changed our thinking …. In fact, it is not even our case that the unintended benefit to the allocatee is an equivalent loss to the exchequer. The leak of the initial draft causes great embarrassment as the Audit Report is still under preparation. Such leakage causes very deep anguish,” the Government auditor's letter said.
No report received
Under media glare and not wanting to lose his cool, the Coal Minister, Mr Sriprakash Jaiswal, said that his Ministry has received ‘no report' nor does he know about any interim report. While outlining the initiative taken by his Ministry to make the coal mines allocation mechanism very transparent, he said that “intent of the Central Government is not to make money. Whatever revenue is generated goes to the States.”
He further said that this will not have any impact on the next round of competitive biddings. In offing are 54 blocks. The process is expected to be completed in next three-four months.
Asked why the merchant power producers, who will be selling power at market rates, were given the coal blocks at a lower price, he said the proposal comes from the nodal ministries and on their recommendations decisions are taken.
PM's stand
PTI report adds: The Prime Minister, Dr Manmohan Singh, today said there was no need for him to clarify any thing in Parliament as the CAG has clarified there is no report.