Mismatch in coal mine output data flagged

Of the production figures submitted to the Coal Controller's Organisation by 19 prior allottees in West Bengal, Jharkhand, Chhattisgarh and Maharashtra, there were mismatches in eight

The Comptroller and Auditor General said on Tuesday there were discrepancies in production data furnished by prior coal block allottees and the monitoring mechanism was inadequate.

The CAG observed the mechanism at the Coal Controller’s Organisation (CCO) was weak, especially in the scenario after e-auctions of coal mines. Officials, however, said monitoring is the domain of the state governments and efforts had been made to improve it.

Under a monitoring mechanism prescribed by the Centre, coal block allotees are required to file report before commencement of production and after with CCO. Besides, revenue collection is done based on evaluation by the state mining and excise departments. About Rs 2,200 crore has flowed to the state governments from 13 coal blocks that have started production. The e-auction mechanism has multiple conditions for extraction and use of coal by successful bidders. The conditions ensure coal is extracted to plan and used for the purpose the mine was allocated, and to protect the interest of the exchequer, said an official.

CAG, however, said of the production figures submitted to the CCO by 19 prior allottees in West Bengal, Jharkhand, Chhattisgarh and Maharashtra, there were mismatches in eight. Two allottees reported less  to the CCO  than they did to state governments and six  reported more.

Conditions prescribed in the Coal Mining Development and Production Agreement were not properly monitored, the CAG said in its report on auction of coal mines that was tabled in Parliament today.

The CAG observed the CCO failed to ensure compliance with mine closure guidelines issued by the coal ministry. Officials, however, said the CAG report has crossed its brief since it was meant to audit blocks given out through e-auction. It was not meant to audit blocks given out under the prior mechanism of screening committee which have been cancelled by the Supreme Court.