Secondly, allowing joint ventures to bid separately meant that the apex auditor “could not draw an assurance that potential level of competition was achieved”. In a report on the e-auctions, tabled in Parliament, CAG criticized the auction process mainly on two counts. New Delhi: The Comptroller and Auditor General of India (CAG) on Tuesday pointed to “certain inadequacies” in the way the first and second coal block auctions were held last year that warranted improvements but refrained from saying bidders did anything illegal. E-auction of coal is designed to ensure that coal mines are given to power companies at an affordable rate as they sell electricity at regulated prices and to sectors such as steel and cement at best market price. The CAG, however, complemented the government for bringing a new paradigm in the allocation of natural resources within five months of Supreme Court cancelling the allocation of 204 coal blocks in September 2014.

Source: Mint July 26, 2016 18:56 UTC