03 April 2013

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CAG Gujarat Modi Government undue benefits to companies causing Rs.750 Crore Losses to Indian Citizens

CAG  Gujarat Modi Government undue benefits to companies causing Rs.750 Crore Losses to Indian Citizens

The Comptroller and Auditor General of India (CAG) has indicted the Gujarat government and state Public Sector Undertakings for extending “undue” benefits to major industrial houses causing a loss of Rs 750 crore to the state exchequer [ Indian Citizens ]

The major beneficiaries are
Reliance Industries Ltd (RIL)  -
CAG report said that Gujarat State Petronet Ltd (GSPL) was responsible for deviating from the agreed terms of recovery of gas transportation charges from the specified entry point of the company’s pipeline network and this led to passing of undue benefit of Rs 52.27 crore to RIL
CAG  said that  GSPL had failed to safeguard its own interest and passed on undue benefit to RIL.

Essar Steel -
CAG said that
"delay in regularisation of encroached Government land coupled with levy of as-hoc penalty at lesser rates in the case of Essar Steel Company Ltd. resulted in short recovery of Rs. 238.50 crore."

Adani Power Ltd (APL) –
CAG report said that Gujarat Urja Vikas Nigam Ltd (GUVNL) did not adhere to terms of the Power Purchase Agreement (PPA), which led to short recovery of penalty of Rs 160.26 crore and passing of undue benefit to Adani Power Ltd (APL).

CAG report says that state government tweaked rules to grant land to automaker Ford India and engineering and construction major Larsen and Toubro.
"Larsen and Tubro was allotted Government Land for manufacture of Super Critical Steam Generators and Forging Shop for Nuclear Power Plant.
The price of the land was fixed by DLVC instead of SLVC rates. This resulted in forgoing of revenue of Rs.128.71 crore"

The CAG report stated that during 2011-12, the government raised excess market loans than required for financing its deficit, showing non-application of prudent fiscal management.

CAG also said that "As of March 31 2012, Government had invested Rs.39,179 crore in Statutory Corporations, Government Copmpanies, Rural Banks, Joint Stock Companies and Co-operatives. The average return on the investments was 0.27 percent in the last five years while the Government paid an average 7.75 per cent as interest onits borrowings during 2007-08 to 2011-12." "Continued use of borrowed funds to fund investments which do not have sufficient returns will lead to an unsustainable financial position"

Leader of opposition in the state assembly Shankarsinh Vaghela said that
the government placed other CAG reports on the last day of the budget session which was unconstitutional.
He said CAG had earlier reported corruption to the tune of more than Rs 42,000 crore by the Modi government.
He said that Modi government avoided the tabling of the crucial "Commercial'' report of the apex auditing agency Comptroller and Auditor General of India (CAG) to hide its corruption

Reality views by sm –

Wednesday, April 03, 2013

Tags – CAG Gujarat Corruption Modi Government


MEcoy April 03, 2013  

another nice post sm