THE COAL SCAM

A STUDY!!

THE SCAM

WHAT IT IS!

COMPARISON
OF SCALE

THE
GAINERS

THE
PROCESS

ESTIMATE

THE PEOPLE
RESPONSIBLE

 1.87 lakh Crore Rupees

Biggest scam in India by now
Report authenticated by
Comptroller and Auditor
General of India

What is the coal scam?

A question many of you would have.

WHAT IT IS!

Simply put it is a corruption scandal

where-in the Comptroller and Auditor
General of India (CAG) office has
accused the Government of India for
providing the nation's coal deposits
to private and state-run entities in an
irregular and arbitrary manner instead
of publicly auctioning them off to the
highest bidder (as is usually done for
such entities), resulting in a loss of
approximately
186,000
crore
(US$33.67 billion) to the exchequer
during the period 2004-2009.

To g e t a n i d e a o f i t s
s c a l e l e t s s e e w h a t

this money
could have bought

Coal secretary had warned way back in 2004 about windfall gains to private
companies under existing scheme of allotment but PMO continued to delay process
of competitive bidding.

This delay meant that coal was allocated under the existing, opaque process giving
private companies huge monetary gains.

The CAG took into account average production cost per tonne of coal of all grades
produced in open cast mines of CIL as well as sale price as reference value in order
to calculate the financial gain to allottees.

Infographic Source: PTI (Press Trust of India)

BIGGEST WINDFALL ALLOCATION

PRIVATE SECTOR

Gains (Rs. Cr)

PSU

Gains (Rs. Cr)

Strategic Energy Tech System Ltd.

33,060

NTPC

35,024

Electro Steel Castings and Others

26,320

TNEB & MSMCL

26,584

Jindal Steel and Power Ltd.

21,226

JSEB & BSMDC

18,648

Bhushan Steel Ltd, Jai Balaji Ltd &

Rashmi Cements

15,967

MMTC

18,628

Ram Swarup Lohh Udyog, Adhunik

Corp, Uttam Galva Steel

15,633

WBPDCL

17,358

12,767

CMDC

16,498

10,419

MSEB & GSECL

15,335

JSPL & Gagan Sponge

JSPL/MCL/PL/Jindal
Stainless/Shyam DRI
Tata Steel Ltd.

7,161

JSMDCL

11,988

Chattisgarh Captive Coal Co Ltd.

7,023

MPSMCL

9,947

CESC Ltd & JAS Infrastructure

6,851

Note: Based on prices at time of allocation

WHO IS RESPONSIBLE?
The Comptroller and Auditor General of India puts the Coal
Ministry and the government, particularly the PMOs office
during the period 2004-2009 as responsible for the
misallocation of coal blocks. The coal ministry at the time was
headed by the current Prime Minister Dr. Manmohan Singh,
whose clean image has now come under question.