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Phone licences issued under the sale have since been revoked by the Supreme Court, casting a cloud on the country's previously heralded telecom sector.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

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...