Indias financial and Audit Agency CAG's latest report has shook the nation. It brings to light the biggest scam ever encountered by the nation. The scam is totalled at about 1.86 Lakh Crores ($33 billion). It was bigger than 2G scam which made India lose $31.97 billion.
CAG report questions the coal block allocations in India to both private and public companies without proper planning. The Coal ministry was handled by the Indian Prime Minister during the allocations. This questions the Prime Minister who allegedly allotted 44 billion tonnes of coal at below market prices during his stature as a Coal Minister.
The CAG also released the report on Ultra Mega Power Projects (UMPP). The report highlights that Reliance Power, a leading Private generation utility benefited the most. Reliance power's Sasan Ultra Mega Power Project, which is one of Indias major coal-based project was allocated Coal at extra low prices.
The report also highlighted that the Reliance Power was given full permit to use coal in excess from three Coal blocks which was allocated for the Sasan Ultra Mega Power project, without even conducting a bidding.
This shows how the Coal lobby is benefeting from the Indian Government. The Financial benefit to Reliance Power due to impact of lower Coal block tariff was estimated at Rs 29,033 crores.
