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| CAG raps Eastern Coalfield for Rs 135-cr revenue loss |
| Press Trust of India / New Delhi Jul 10, 2009, 16:48 IST |
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The Comptroller and Auditor General of India (CAG) has rapped the Coal India subsidiary, Eastern Coalfield(ECL), for incurring a revenue loss of over Rs 135 crore by supplying coal below the notified price to the National Thermal Power Corporation (NTPC).
"The ECL sold coal to the units of NTPC below the notified grade price under Coal Supply Agreement (CSA) and sustained a loss of Rs 136.63 crore during last three years till March 2008," CAG has said in its report tabled in Parliament.
In addition, ECL did not review the terms and conditions of the agreement after a period of five years as contemplated in the agreement to arrest the loss, it added.
ECL had entered into a CSA with NTPC in August 1999 for sale of coal from its Rajmahal mines at a price notified by the government.
Although The Rajmahal Project Authority had pointed out the loss of revenue for selling coal below the notified price in September 2002 itself, the management did not take any step to check it, the report said.
"During 2005-06 to 2007-08, the Rajmahal Project sold 283.57 lakh MT coal to the NTPC below the notified price resulting in a loss of Rs 136.36 crore. It (company) had also not reviewed the terms and conditions of the agreement since August 2004 to arrest the loss," the CAG report added.
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