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AUG 18 2012

CAG did not consider eGoM decision on surplus coal: Power Ministry

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 18th AUG 2012

The Power Ministry expressed difference to the finding of CAG report on Ultra Mega Power Projects where it alleged a financial benefit of Rs 29,033 crore to Anil Ambani-led Reliance Power over 20 years.

“It is stated that the cost and tariff of two projects cannot be compared as the tariff would vary with the capital employed in the project, the size of the project and the technology used,” the Ministry said in a statement.

The nodal Ministry is the opinion that the contentious issue of surplus coal has been dealt in detail by eGoM and need not be re-looked. The eGoM also sought legal view from Attorney General of India before reaching a consensus.

Power Ministry stands by the eGoM decision of April 24 that says the permission given for the use of surplus coal of Sasan coal blocks to Chitrangi project need not be withdrawn.

“CAG was informed of the eGOM decision and all relevant papers including the legal opinion were sent. CAG has not taken cognizance of all these relevant facts in its final report,” it added.

Clarifying on non-following bidding norms, the Ministry said the evaluation committees were headed by independent experts such as Deepak Parekh for Sasan; for E. Shridharan for Krishnapatnam; S.S. Kohli for Mundra and Shunglu Tilaiya projects.

Power Ministry said that it would consider CAG findings while it notifies standard bidding documents for the 12th Five Year Plan products.


Comptroller and Auditor General Reliance Power Mega Power Project Ultra Mega Power Project Power

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