Coal Auction Success Proves the Scam Was Real: Venkaiah Naidu

Published: 20th February 2015 03:54 PM  |   Last Updated: 20th February 2015 03:55 PM   |  A+A-

By PTI

BENGALURU:  With metal and cement companies bidding aggressively for coal blocks, Union Parliamentary Affairs Minister M Venkaiah Naidu today said the success of auctions had proved that the coal scams were real and not an imagination of the CAG, vindicating BJP's position.    

Also Read: Coal Auction: Lot 2 Mines From Feb 25, Gain Till Now Rs.84,000 Crore

"The BJP's stand of insisting on a thorough inquiry has proved to be correct. The arguments by the then Finance Minister that there was zero loss has proved to be wrong," Naidu said.           

He said former Prime Minister Manmohan Singh had said there was no scam but "now it is clear that the country had suffered a huge loss of Rs 1.86 lakh crore."       

Naidu said the Modi government's decision to conduct a "fair and transparent" bidding for 20 mines was benefitting the country.      

In just four days, he pointed out, the offers had crossed Rs 60,000 crore and the (mine rich) states would benefit maximum.   

With 19 blocks currently on offer in the country's first mine auction, 14 have already been sold for nearly Rs 80,000 crore.      

In its findings in 2012 which dealt a severe blow to the Manmohan Singh-led UPA government, the Comptroller and Auditor General had noted that lack of a transparent bidding process had caused a staggering loss of Rs 1.86 lakh crore to the exchequer.          

The coal blocks were earlier allotted through a screening committee mechanism which was changed to the process of auction bidding by the Modi government after the Supreme Court cancelled allocation of 204 mines in September last year.          

In the first tranche 19 mines are on offer and in the second round 43 blocks will be auctioned from February 25 to March 5.     

The government expects to raise Rs 15 lakh crore from the new bidding process. Most of the bids so far are beyond the expectations of analysts benchmarked against the prices of state-run Coal India.       

India is expected to overtake the United States as the second-largest coal consumer after China this decade. The demand for coal in the country has outstripped supply with government monopoly Coal India Ltd not being able to ramp up the supply.    

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp