C`garh Power incurs Rs 1,550 cr loss: CAG
The CAG report tabled in the Chhattisgarh Assembly has pointed out that State Power Generation Company made a "potential loss" of Rs 1,549 crore.
Raipur: The Comptroller and Auditor General report tabled in the Chhattisgarh Assembly has pointed out that State Power Generation Company made a "potential loss" of Rs 1,549 crore due to amendment made in the tender document over payment of coal mining fee to a joint venture company.
Chief Minister Raman Singh tabled the CAG report in the House today.
The report stated that the Ministry of Coal had allotted Parsa coal block at Ambikapur in August 2006 to the erstwhile Chhattisgarh Electricity Board, now known as Chhattisagrh State Power Generation Ltd, for captive use for its Marwa thermal power project.
CSEB decided to explore the Parsa block through a joint venture company and invited tenders to develop, mine and transport the coal from Parsa to the project site.
The joint venture was to be formed between CSEB and the bidder who would offer maximum discount on the notified price for `F` grade (inferior and cheaper grade) coal in Parsa.
Adani Enterprises Limited, was selected as the JV partner as it offered highest discount.
At the same time, AEL sought that, if after exploration, the quality of coal was found to be of better quality than the `F` grade coal, the payment of fee would be as per the price notified for superior quality of coal.
The coal mining fee for superior quality of coal is more than lower quality of coal.
According to CAG report, CSEB was already aware that the grade of the coal available in Parsa block was of superior quality but it agreed to provide coal fee on the same discounted price bided for low quality of coal and amended the tender to give effect to this change.