26 July 2014

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CAG Gujarat Government allowed undue favour worth Rs 649.29 Crore to Reliance Petroleum

CAG Gujarat Government allowed undue favour worth Rs 649.29 Crore to Reliance Petroleum

The CAG report on ports and transport department for the year ended March 31, 2013 was tabled in the Assembly on Friday

The report says that The state government-run Gujarat Maritime Board handed an "undue favour" to Reliance Petroleum Ltd (RPL) by allowing it to pay only half the stipulated port fees, which led to a loss of Rs 649.29 crore,

As per the report, GMB entered into an agreement with RPL in July 1999 to allow the petroleum firm to build its own captive jetty in Sikka near Jamnagar, for its liquid and gas cargo.

According to CAG, the cost of construction of the jetty was Rs 362.01 crore.
As per the agreement and the government policy to encourage private players, GMB allowed a 50 per cent rebate on the stipulated wharfage (port fees) at the rate of Rs 36 per metric tonne to RPL till construction cost was recovered.

RPL paid Rs 18 per MT of cargo handled at it jetty after it commenced the operations in 1999. However, according to CAG, even after RPL recovered the cost of construction in January 2006, GMB allowed RPL to pay at the same rate.

In June 2010, RPL added Rs 138.92 crore to the original cost of construction, taking it to Rs 452.51, claimed CAG.
So, GMB allowed RPL to pay at the concessional rate till March 2012

The state-run Gujarat Urja Vikas Nigam Ltd (GUVNL) passed on "undue benefit" of Rs 587.50 crore to Essar Power by allowing it to change the delivery point of transmission of power to GETCO from its plant, the CAG report said.

Media reported that quoting CAG said that, non-monitoring "of the construction quay in phase 1 of Adani Group-owned Mundra port led to short recovery of Rs 118.12 crore."

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Saturday, July 26, 2014

Tags – CAG Reliance Undue Favor Gujarat


rudraprayaga July 29, 2014  

When will India will breathe scam-devoid air?So sad to hear about scams and scams in India.