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GSPC favoured Adani, Essar, says CAG report

GANDHINAGAR: The CAG on Friday pulled up Gujarat government company, GSPC for extending undue benefits to Adani Energy and Essar Steel and said the company\'s poor management of oil and gas exp

Published: 30th March 2012 06:59 PM  |   Last Updated: 16th May 2012 09:50 PM   |  A+A-

GANDHINAGAR: The CAG on Friday pulled up Gujarat government company, GSPC for extending undue benefits to Adani Energy and Essar Steel and said the company's poor management of oil and gas exploration business led to over Rs 5,000 crore loss.

The report of the Comptroller and Auditor General (CAG), which was tabled in the state Assembly on Friday, said GSPC bought natural gas from the open market (spot market) and sold it to the Adanis at a price lower than the purchase price. CAG estimated that Adani Energy received undue benefit of Rs 70.54 crore in the process.

The firm passed on undue benefit of Rs 12.02 crore to Essar Steel Ltd by way of waiver of capacity charges contrary to the provision of gas transmission agreement.



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