The subject matter of audit was the allotment of coal blocks to private and Public enterprises in the past 6-7 years which CAG feels should have been done through an auction mechanism instead of screening committee method which is not transparent. Mines are national resources and the sovereign Government owns them on behalf of people of India. They can not sell them but can lease them out for productive exploitation for a fee and a recurring royalty from the firm who win mining rights for a period of time. I will probably be able to comment on the accuracy or inaccuracy of the loss figures once the full report is tabled. But I wonder why this fuss about CAG report at all?

Private corporate companies have been mandated under corporate laws to appoint a statutory auditor in the Annual shareholder meetings to inspect and audit the accounts and certify as to the correctness and compliance to standards prescribed by ICAI.Normally any anamoly in accounting practices are pointed out as qualifications in their report and this is commented upon by the Board who are the custodians of shareholder wealth in their Report. The shareholder is left to draw his own conclusions and can question the board in the annual general meeting where the accounts are normally debated and adopted.

Just like corporates, Soverign elected governments are custodians of wealth of the people. The Audit reports are normally tabled in Parliament where the elected representatives on both sides of the divide, the ruling and opposition demand answers from the ruling party. That is the proper way of discussing an Audit report. Today, audit reports are analysed, criticised in the electronic and print media even before they are tabled which itself is a breach of parliamentary privilege.

A government decides on a policy matter keeping in view the pros and cons of the various stakeholders interests.In the instant case, if the Government had chosen not to auction the coal blocks delibarately, for that would have escalated the price of coal used in thermal power generation which in effect could have pushed up consumer tariff. already the UMPP awardees like Tata Power and Reliance are clamouring for upward revision of PPA citing increaed cost of coal. This socio economic benefit should take precedence over mere revenue for the state for that could have killed the idea of generating more power for a power defict country

This CAG has a hidden agenda. Please watchout