manmohansingh1AFP-670
Indian Prime Minister Manmohan Singh. — Photo by AFP/File

NEW DELHI: Indian investigators believe 12 firms were given “undue favours” by the government when it let them mine coal without making them bid for the rights, a newspaper report said Monday.

An official from the Central Bureau of Investigation (CBI) told the Mint newspaper that a probe ordered by the country's anti-graft watchdog found the dozen companies were given coal deposits without good reason.

“These companies did not meet requisite criteria to get coal and (it) appears that they were given undue favours,” the official said.

The official said preliminary investigations were expected to be completed by the end of August.

The probe was launched after the Times of India revealed a draft report by the national auditor saying the government lost $210 billion in revenues by awarding 155 coalfields to firms without inviting competitive bids.

The auditor's final report on the allocation of coalfields, initially scheduled to be presented in parliament in May, was put on hold until the monsoon session, which will begin on Thursday.

Coal Minister Sriprakash Jaiswal has said India will scrap its current allocation system and begin to hold open auctions later this year after finalising the guidelines for the process.

The national auditor's reports detailing treasury losses due to alleged graft have caused major scandals for the Congress-led government in recent years.

In one case the auditor said the mis-selling of mobile phone licences to favour some firms in 2008 cost the treasury up to $39 billion.

Phone licences issued under the sale have since been revoked by the Supreme Court, casting a cloud on the country's previously heralded telecom sector.

Opinion

Editorial

Hasty transition
Updated 05 May, 2024

Hasty transition

Ostensibly, the aim is to exert greater control over social media and to gain more power to crack down on activists, dissidents and journalists.
One small step…
05 May, 2024

One small step…

THERE is some good news for the nation from the heavens above. On Friday, Pakistan managed to dispatch a lunar...
Not out of the woods
05 May, 2024

Not out of the woods

PAKISTAN’S economic vitals might be showing some signs of improvement, but the country is not yet out of danger....
Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...