Anil Ambani owned Reliance Power has urged the Comptroller and Auditor General of India (CAG) to delete the “observations” it had made in its draft report about the diversion and utilisation of excess coal from the Sasan and Tilaiya ultra mega power projects in Madhya Pradesh and Jharkhand.
In a letter to CAG Vinod Rai, Reliance Power has stated that in view of the decision taken by the Empowered Group of Ministers (EGoM) not to review its earlier decision allowing Reliance Power to use excess coal from the 4000 MW Sasan UMPP mines for its another project, it was important that such adverse observations about Reliance Power should be removed.
Asserting that the Coal Ministry would come out with a policy on use of excess coal from such mines, the EGoM headed by Finance Minister Pranab Mukerhjee is understood to have decided that any permission for usage of such coal would be governed by the new policy. “It is therefore requested that CAG consider dropping the audit para on undue benefits arising out of surplus coal from Sasan UMPP and Tilaiya UMPP,” it states. The CAG had made the observations in its draft of the report “Working of SPVs in PFC.”
Sources said the draft CAG report had stated that the decision to permit usage of surplus coal gave undue benefit to Reliance Power. The EGoM at its meeting on April 28 had decided not to review the past decision after taking legal opinion from the Attorney General G.E. Vahanvati. “Since the due process has been followed and CAG observations have now been fully acted up after deliberations and review at the highest levels in the government, it is requested that the audit observations pertaining to Sasan UMPP be dropped,” the letter said.
Reliance Power said that as per reported EGoM decision, the permission for surplus coal usage from Tilaiya UMPP would be as per the new policy and hence it may not be appropriate to quantify losses or make observations on Tilaiya UMPP. Reliance Power has bagged three UMPPs — Sasan (Madhya Pradesh), Tilaiya (Jharkhand) and Krishnapatnam (Andhra Pradesh).
Keywords: Reliance Power, illegal coal usage, thermal power projects, Sasan power project, Tilaiya power project, CAG audit report, EGoM on coal
why am i not surprised, or should i say would anyone be?
The INC governments for long have been making/bending laws to benefit this particular group of industries.
Once they allowed a group company owned by his rival brother to change the contracted price with PSU power generating firm (causing loss to the PSU firm ).
Now they allow him to use excess coal from Sasan power project in another one.
Was this part of the orginal contract /bidding when other power firms bid for it?
If not this is cheating the other bidders (they might have bid better considering the benefits) and the nation. who pays for the loss of additional coal to Indian public exchequer, the EGOM headed by Mukherjee or mr Mukherjee himself?
RPower is interfering in the work of CAG. CAG in my opinion is allowed to study the policies made by the Government (elected by People). CAG is a constitutional body. RPower can not say that something as per policy is not harmful. Someday these industries might comment on SC judgment on allocation of natural resources through competitive bidding too saying that "First come First serve " is not loss making because it follows govt policy.
It is a mockery of the system! If CAG had found those anomalies, law should take its course. The UPA govt is always trying to protect those big corporates looting the nation. See how eagerly the EGoM wants to create a legal path to save and server the 'masters'!
EGoM headed by Finance Minister Pranab Mukerhjee is understood to have decided that any permission for usage of such coal would be governed by the new policy. What a shame!
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