Benefits to Private Sector Companies
No Audit Report from the Comptroller and Auditor General (CAG) on the functioning of the Ministry of Power has been received recently. However, the Ministry is in receipt of queries, observations and follow up report on some issues related to Ultra Mega Power Projects (UMPPs).
The audit has observed that Empowered Group of Ministries’ (EGoM)’s decision to allow use of excess coal from the coal blocks of Sasan UMPP to the other projects of the developer has vitiated the key commercial condition for the UMPP resulting in undue benefit to the developer. The Ministry has already replied to the queries raised by the audit in this regard.
One of the bidders had filed a case in the Delhi High Court against the above decision of the Government. That writ petition was dismissed by the court. The said bidder thereafter approached the Supreme Court and the matter at present is subjudice.
This information was given by Minister of State for Power Shri K.C. Venugopal in a written reply to a question in Rajya Sabha today.
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