The Comptroller and Auditor General (CAG) has slammed the Narendra Modi government for favouring and providing undue benefits to Reliance Industries Ltd and Adani Enery which resluted in loss of over Rs5000 crore.
The CAG report, which was tabled in the state legislative assembly on Friday, pointed out that Gujarat govt owned Gujarat State Petroleum Corporation (GSPC) bought natural gases from open market and sold it to Adanis at a price lower than the market prices, whic benefitted the private company with tune of Rs70.54 crore.
The firm passed on undue benefit of Rs 12.02 crore to Essar Steel Ltd by way of waiver of capacity charges contrary to the provision of gas transmission agreement.
CAG was severely critical of GSPC\\\’s operations in the Krishna Godavari basin gas block where improper assessment of technical and financial issues led to drilling cost shooting up to USD 1.302 billion as against estimate of USD 102.23 million.
"The bidding process adopted by the company for acquisition of hydrocarbon block was found to be defective as in case of KG block. The bids of the company ignored the actual cost involved which exposed the company against high risk in exploration activities," CAG report stated.
The main reasons for the incorrect estimation, CAG said, was adoption of deficient geological model prepared by its joint venture partner, Geo Global Resources of Canada, which led to escalation in the cost of exploration phase from Rs 531.94 crore to Rs 6,265.68 crore.
The assembly had been witnessing high drama over state government tabling the report on the last day of the session to avoid uncomfortable questions.
The opposition Congress came down heavily on Narendra Modi and Bharatiya Janata Party after the CAG report was tabled, while no official statement has come so far from the BJP on this matter.