CVC instructed CBI to expand the scope of investigation on Coalgate

The Central Vigilance Commission on 24 September 2012 instructed the Central Bureau of Investigation to expand its investigation scope on Coal Block Allocation to private firms in between 1993 to 2004. The decision was made after CVC received a letter from the Coal Minister, Shriprakash Jaiswal seeking a probe from CBI on allocations made, since 1993.

Widening of the scope of investigation will bring into scanner the allocation done to private companies during the reign of P.V. Narasimha Rao led congress government after 1993, including United Front Government from 1996 to 1998 and BJP-led NDA government  from 1996 to 1998. Report of Comptroller and Auditor General of India (CAG) - Vinod Rai on coal block allocations tabled in the parliament states-

1. Due to arbitrary allotment of the coal blocks the Indian exchequer suffered a loss of Rs 1.86 lakh crore equivalents to $ 37 billion
2. Up to 31 March 2011 total 194 coal blocks were allotted to different private and government parties with an aggregate quantity of 44,440 million tonnes of coal
3. The beneficiary of these allotments as per CAG report were 25 major companies of India including Essar Power, Jindal Steel and Power, Hindalco and Tata Power
4. To bring out transparency in the process, the CAG suggested competitive bidding as a better solution

CAG pegged Public Exchequer’s Loss at 1.86 Lakh Crore in Coal Blocks Allocation Scam