Rs 1.86 Lakh Crore Coal Scam in India by Congress Government – Full Text of CAG Report

August 17, 2012 · Author: · Category: / 

The office of the Controller and Auditor General in a report released just a while ago has substantially reduced the amount of LOSS Caused to the Central Government Exchequer due to Coal Block Allocation to private parties and vested interests without following a proper methodology for allocation. The Coal Block Scam under Dr. Manmohan Singh and Sonia Gandhi led Congress Government is of Rs 1.86 Lakh Crore, larger than 2G Spectrum Scam.

Full Text of the Coal Block Scam is Available Here for Ready Reference,

  • Preface of the CAG Report Download [PDF]
  • Executive Summary Download [PDF] – This Summary is Sufficient for Most Citizens
  • Overview of Coal in India Download [PDF]
  • Audit Framework Download [PDF]
  • Augmentation of Coal Production Download [PDF]
  • Allocation of Captive Coal Blocks Download [PDF]
  • Production Performance of Captive Coal Blocks Download [PDF]
  • Conclusions and Recommendations Download [PDF]

Isn’t it high time to drive out Corrupt Governments, Politicians and Bureaucrats ?

Updated on 30-12-2012
V K Gupta, a Subject Expert Writes to us as follows

My observations about the CAG report are as follows:
1. Calculation of average cost price taken as Rs. 583.01 in not correct. This will depend upon many factors such as geological conditions, situation of the mine, distance from mine to the consumption point, quality of coal, presence of dirt bands in the coal seam, metod of work etc.

2. This average cost price of CIL mines of Rs. 583.01 is on very low side and erroneous. If you compare the cost of CIL mines with that of 20 years back, taking in to consideration hike in wages, consumables and other costs the reason for arriving at this figure need examination. One of the likely reasons is out sourcing the coal production and overburden removal. Whether the contractors are meeting all the statutory provisions of Contract (Abolition & Regulation Act) need thorough examination. I doubt if all the workers are being paid as per Coal Wage Board Agreement. I also doubt that all workes are members of Coal Mines Provident Fund and are contributing to it.

Apart from this, If the present and projected coal production is diturbed, it will completely geopertise the future plans of Electricity production, Steel production, Cement production and all other coal bsed industries.

As mentioned in the report, CIL’s underground mines are mostly making loss. There is no mention in the report to compensate the underground coal Block allotees having difficult mining conditions.
My observations about the CAG report are as follows:
1. Calculation of average cost price taken as Rs. 583.01 in not correct. This will depend upon many factors such as geological conditions, situation of the mine, distance from mine to the consumption point, quality of coal, presence of dirt bands in the coal seam, metod of work etc.

2. This average cost price of CIL mines of Rs. 583.01 is on very low side and erroneous. If you compare the cost of CIL mines with that of 20 years back, taking in to consideration hike in wages, consumables and other costs the reason for arriving at this figure need examination. One of the likely reasons is out sourcing the coal production and overburden removal. Whether the contractors are meeting all the statutory provisions of Contract (Abolition & Regulation Act) need thorough examination. I doubt if all the workers are being paid as per Coal Wage Board Agreement. I also doubt that all workers are members of Coal Mines Provident Fund and are contributing to it.

Apart from this, If the present and projected coal production is disturbed, it will completely geopertise the future plans of Electricity production, Steel production, Cement production and all other coal based industries.

As mentioned in the report, CIL’s underground mines are mostly making loss. There is no mention in the report to compensate the underground coal Block allottees having difficult mining conditions.

It is therefore suggested as follows:

1. The persons who are responsible flouting the norms and have indulged in the corrupt practices should be taken to task.
2. The projected growth of coal production should not be disturbed to keep pace with the growth of the country.
3. It appears quite sure that some allottees has been given easier blocks and others difficult.
4. The companies who have been allotted underground blocks specially having difficult mining conditions, should be compensated as an incentive to them.
5. The Average cost price of the projects both underground and opencast should be regulated by variable Royalty depending upon mining conditions and other cost factors.
5. It should be ensured that all worker working with CIL or CIL’s contractors and Block allottees should be paid wages as per statute.
6. It should be ensured that all workers are members of Coal Mines Provident Fund Scheme and they regularly contribute.
7. Because of shortage of funds with Coal Mines Provident Fund Organisation, Pension to the retirees is no being paid regularly and adequately. It is painful to state that very senior retirees are getting pension of about Rs. 1500/- per month after serving the Coal Industry for more than 30 years. If necessary, CMPF Pension Scheme should be amended.
It is therefore suggested as follows:

1. The persons who are responsible flouting the norms and have indulged in the corrupt practices should be taken to task.
2. The projected growth of coal production should not be disturbed to keep pace with the growth of the country.
3. It appears quite sure that some allottees has been given easier blocks and others difficult.
4. The companies who have been allotted underground blocks specially having difficult mining conditions should be compensated as an incentive to them.
5. The Average cost price of the projects both underground and opencast should be regulated by variable Royalty depending upon mining conditions and other cost factors.
5. It should be ensured that all worker working with CIL or CIL’s contractors and Block allottees should be paid wages as per statute.
6. It should be ensured that all workers are members of Coal Mines Provident Fund Scheme and they regularly contribute.
7. Because of shortage of funds with Coal Mines Provident Fund Organisation, Pension to the retirees is no being paid regularly and adequately. It is painful to state that very senior retirees are getting pension of about Rs. 1500/- per month after serving the Coal Industry for more than 30 years. If necessary, CMPF Pension Scheme should be amended.

Comments

4 Responses to “Rs 1.86 Lakh Crore Coal Scam in India by Congress Government – Full Text of CAG Report”

  1. Congress Government's Coal, Delhi Airport Land Scams - Why PM Must Resign ? | Dalal Street on August 18th, 2012 14:16

    […] Prime Minister of India in my opinion has the best chance to take moral responsibility of the Coal Scam, Delhi Airport Land Bank Allotment Scam and Rampant Violations / Bid Rigging in Ultra Mega Power […]

  2. editor on August 21st, 2012 13:11

    The Screening Committee (responsible for awarding coal blocks) had wide representation of different ministries; however, records do not suggest that coal block allocations were based on comparative evaluation of applicants and allotments were made merely on the basis of recommendation from State Governments and other administrative ministries.

    Since July 2004, 142 coal blocks were allocation to Government / private parties as per the ‘non-transparent’ process.

    Delay in introduction of competitive bidding for coal blocks: Although introduction of competitive bidding for coal blocks was mooted in June 2004 and legal advisory on in July 2006 on permissibility of the same, the modus operandi for competitive bidding is yet to be finalized.

  3. Data of historical Scams in India | FreePress India on August 21st, 2012 13:26

    […] Scam – Rs 6.1 Lakh Crore or USD 126 Bn [CAG Report] – Uncovered in March – 2012 – Final Report is Here and the Scandal Amount is Rs 1.86 Lakh Crore [Manmohan Singh is indicted in the report, so beneficiary of corruption will be […]

  4. Coal, Airport Land Scams Paralyze Congress Government Again - Keys Bills Lie in Parliament Dust | FreePress India on August 31st, 2012 10:35

    […] of India, Dr. Manmohan Singh has found his government in Paralysis yet again with the exposing of Largest Ever Natural Resources Loot in the World – The Great Indian Coal Allocation Scam. Out channel checks suggest that their are some extremely key bills pending in the Parliament and […]

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