Congress uses CAG report on Gujarat to rap BJP

Last Updated: Wed, Apr 03, 2013 07:56 hrs

New Delhi: Reacting to the Comptroller and Auditor General's (CAG) critical remarks against the style of functioning of the BJP Government in Gujarat, Information and Broadcasting Minister Manish Tewari on Wednesday described it as a sensitive situation that needed to be dealt with carefully.

"The opposition should realise that even they run a government and there are controversies they come under as well. Hence, the matter should be dealt with in a more matured manner," said Tewari.

The Congress also challenged the Bharatiya Janata Party's (BJP) central leadership to take action against those responsible for the financial loss to the exchequer based on the findings reflected in the CAG report.

"They (the BJP leadership) have two stands for Delhi and Ahmedabad. The BJP wiped out an entire session of Parliament over a CAG report. The point is different," Tewari said.

He also questioned the BJP as to why is there a deafening silence from their central leadership on the report?

Earlier,the CAG had rapped the BJP Government headed by Narendra Modi for non-compliance of rules and procedures. 

RIL, Adani Power got undue favours from Gujarat PSUs

In what could add more teeth to the opposition party's allegations against the Narendra Modi-led Gujarat government, the Comptroller and Auditor General of India (CAG)'s latest report has brought out fresh details of undue favour by state public sector undertakings (PSUs) to Reliance Industries Limited (RIL) and Adani Power Limited (APL).

As per the CAG report for the year ended March 31, 2012, Gujarat State Petronet Limited (GSPL) was responsible for deviation from the agreed terms of recovery of transportation charges for transportation of gas from the specified entry point of the company's pipeline network led to passing of undue benefit of Rs  52.27 crore to RIL.

Similarly, Gujarat Urja Vikas Nigam Limited (GUVNL), as per CAG report, was involved in non-adherence to the terms of power purchase agreement (PPA), which led to short recovery of penalty of Rs  160.26 crore and passing of undue benefit to Adani Power Limited (APL).

CAG is of the view that GSPL did not safeguard its own interest leading to passing on of undue benefit of Rs  52.27 crore to RIL. GSPL had entered into a gas transportation agreement (GTA) with RIL for transportation of D6 gas from Bhadbhut in Bharuch district to RIL refinery in Jamnagar on March 2007.

However, when RIL began transporting gas from its KG-D6 filed to its refinery and GSPL started transporting the D6 gas from Bhadbhut to RIL's refinery in Jamnagar, the latter did not invoke the GTA terms and instead charged RIL a single rate on the quantity transported, thereby passing of undue benefit of Rs  52.27 crore to RIL.

On the other hand, the CAG report observed that GUVNL recovered a penalty of only Rs  79.82 crore from APL for its failure to supply power and also for the short supply of power against GUVNL's entitlement in the power generated by APL during August 2009 to January 2012.

According to CAG, the actual penalty to be recovered by GUVNL from APL as per PPA terms amounted to Rs  240.08 crore.

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