Skip to main content

"Undue benefits" in Gujarat to business groups Reliance, Adani, Essar under Modi government: CAG

By Our Representative
In what may prove to be a major embarrassment for Narendra Modi’s Gujarat model of development, the Comptroller and Auditor General (CAG) of India has sharply criticized the state government for giving “undue benefits” to three of the biggest investors in Gujarat – Reliance, Adanis and Essar. The CAG report, which was tabled in the Gujarat state assembly, has particularly come down heavily on the Gujarat Maritime Board (GMB) failing to recover “full wharfage rate” between 2008-09 and 2012-13 from the Reliance Petroleum Ltd’s captive jetty in Sikka, Jamnagar.
The CAG said, "Undue benefit was extended to Reliance Petroleum Ltd (RPL) by non-recovery of full wharfage rate after the cost of captive jetty (Rs 362.01 crore) constructed by it was set-off. Further, erroneous calculation of set-off value and application of incorrect wharfage rate resulted in short recovery of Rs 649.29 crore from Reliance Petroleum." RPL is the country’s biggest oil refinery, and its captive jetty has two single buoy moorings for captive consumption.
As for the Adani Group, which has been sharply criticized for being closest to Modi, CAG has wondered how Mundra Port in Kutch district could be turned into Adani Port. Pointing out that the Mundra Port was actually planned under the join sector of public-private partnership, it has said, the Gujarat government did not follow competitive bidding process while disinvesting its stakes in the Mundra port. The Mundra port was jointly owned by the Adani Port Ltd and Gujarat Ports Infrastructure Development Company Ltd (GIPDCL), a special purpose vehicle of the Gujarat Maritime Board.
Coming to the Essar Group, CAG said, the “change” of delivery point subsequent to finalisation of power purchase agreement (PPA) – which took place with the Gujarat Urja Vikas Nigam Ltd (GUVNL) -- led to passing of “undue benefit to Essar Power Gujarat Ltd for Rs 587.50 crore during the tenure of PPA” The PPA was signed in February 2007). CAG also noted, the change in the delivery point helped the Essar Power  “save” Rs 52 crore, as it did not have to construct transmission lines, and saved another Rs 21.42 crore per annum as there “no line losses”. The agreement with the GUVNL was supplying 1,000 MW of power for 25 years.
Just like the previous few years, this year, too, the Gujarat government placed the CAG report in the Gujarat state assembly on the last day of its session. The tradition of placing CAG report, which has proved to be embarrassing for the government, on the last day began about more than a decade ago. Previously, the CAG report would be placed in the house soon within ten days of the beginning of the budget session. Not without reason, this has helped the ruling party evade any discussion on contentious issues mentioned in CAG reports.
Apart from criticizing the Gujarat government of being soft to big business houses,  CAG for its report ending March 2013 has simultaneously taken on the government for "lack of effective  monitoring  mechanism in prisons", which it said resulted in serious security lapses. The result was the excavation of a tunnel inside a yard of the Sabarmati Central jail in February 2013, dug by a group of 55 prisoners, all of whom were accused in cases of 2008 Ahmedabad serial bomb blasts at the Civil Hospital, killing about 30 persons.
The CAG noted, "Out of the 26 Closed Circuit Television (CCTV) cameras installed in Sabarmati Central Jail in September 2007, 22 cameras were not working and system of taking footage had not been developed." It added, "Though there was shortage of 50 per cent of security staff for a long time and permission was granted by the government for recruitment of sepoys, the process for recruitment remained incomplete."
 "There were no watch towers surrounding the main wall of the old prison and the watch towers constructed inside were broken and abandoned. Binoculars and searchlights were not provided to staff on duty on the watch tower in test-checked prisons," the CAG said, adding, this was in against the norms worked out by the Model Prison Manual. The escape plan of prisoners came to light on February 2013 after the authorities found that a 218-feet long tunnel inside barrack No 4 of Sabarmati Jail  had already been dug. 

Comments

TRENDING

70,000 migrants, sold on Canadian dream, face uncertain future: Canada reinvents the xenophobic wheel

By Saurav Sarkar*  Bikram Singh is running out of time on his post-study work visa in Canada. Singh is one of about 70,000 migrants who were sold on the Canadian dream of eventually making the country their home but now face an uncertain future with their work permits set to expire by December 2024. They came from places like India, China, and the Philippines, and sold their land and belongings in their home countries, took out loans, or made other enormous commitments to get themselves to Canada.

Kerala government data implicates the Covid vaccines for excess deaths

By Bhaskaran Raman*  On 03 Dec 2024, Mr Unnikrishnan of the Indian Express had written an article titled: “Kerala govt data busts vaccine death myth; no rise in mortality post-Covid”. It claims “no significant change in the death rate in the 35-44 age group between 2019 and 2023”. However, the claim is obviously wrong, even to a casual observer, as per the same data which the article presents, as explained below.

PM-JUGA: Support to states and gram sabhas for the FRA implementation and preparation and execution of CFR management plan

By Dr. Manohar Chauhan*  (Over the period, under 275(1), Ministry of Tribal Affairs has provided fund to the states for FRA implementation. Besides, some states like Odisha, Chhattisgarh and Maharashtra allocated special fund for FRA implementation. Now PM-JUDA under “Dharti Aaba Janjatiya Gram Utkarsh Abhiyan(DAJGUA) lunched by Prime Minister on 2nd October 2024 will not only be the major source of funding from MoTA to the States/UTs, but also will be the major support to the Gram sabha for the preparation and execution of CFR management Plan).

Operation Kagar represents Indian state's intensified attempt to extinguish Maoism: Resistance continues

By Harsh Thakor Operation Kagar represents the Indian state's intensified attempt to extinguish Maoism, which claims to embody the struggles and aspirations of Adivasis. Criminalized by the state, the Maoists have been portrayed as a threat, with Operation Kagar deploying strategies that jeopardize their activities. This operation weaves together economic, cultural, and political motives, allegedly with drone attacks on Adivasi homes.

How Amit Shah's statement on Ambedkar reflects frustration of those uncomfortable with Dalit assertion, empowerment

By Vidya Bhushan Rawat*  Dr. B.R. Ambedkar remains the liberator and emancipator of India’s oppressed communities. However, attempts to box him between two Brahmanical political parties betray a superficial and self-serving understanding of his legacy. The statement by Union Home Minister Amit Shah in the Rajya Sabha was highly objectionable, reflecting the frustration of those uncomfortable with Dalit assertion and empowerment.

This book delves deep into Maoism's historical, social, and political dimensions in India

By Harsh Thakor*  "Storming the Gates of Heaven" by Amit Bhattacharya is a comprehensive study of the Indian Maoist movement. Bhattacharya examines the movement's evolution, drawing from numerous sources and showcasing his unwavering support for Charu Mazumdar's path and practice. The book, published in 2016, delves deeply into the movement's historical, social, and political dimensions.

Ideological assault on dargah of Sufi Saint Khwaja Moinuddin Chishti will disturb pluralistic legacy: Modi told

Counterview Desk Letter to the Prime Minister about "a matter of the utmost concern affecting our country's social fabric": *** We are a group of independent citizens who over the past few years have made efforts to improve the deteriorating communal relations in the country. It is abundantly clear that over the last decade relations between communities, particularly Hindus and Muslims, and to an extent Christians are extremely strained leaving these latter two communities in extreme anxiety and insecurity.

Defeat of martial law: Has the decisive moment for change come in South Korea?

By Steven Lee  Late at night on December 3, soldiers stormed into South Korea’s National Assembly in armored vehicles and combat helicopters. Assembly staff desperately blocked their assault with fire extinguishers and barricades. South Korea’s President Yoon Suk Yeol had just declared martial law to “ eliminate ‘anti-state’ forces .”