The Comptroller and Auditor General (CAG) has said government-owned firms in Gujarat granted "undue benefit" to big industrial houses, which resulted in revenue losses worth crores of rupees to the state exchequer.
The CAG report, for the year ended March 31, 2012, was tabled today in the Gujarat State Assembly.
The CAG detailed undue favours to Reliance Industries Ltd (RIL), Essar Steel and Adani Power Ltd (APL).
It also highlighted that the state government has tweaked rules to grant land to Ford India Pvt Ltd as well as Larson and Toubro Ltd.
"Gujarat State Petronet Ltd (GSPL) was responsible for deviating from the agreed terms of recovery of gas transportation charges from the specified entry point of the company's pipeline network and this led to passing of undue benefit of Rs 52.27 crore to RIL," the CAG report said.
CAG was of the view that GSPL has failed to safeguard its own interest, leading to passing on undue benefit of Rs 52.27 crore to RIL.
GSPL had entered into a gas transportation agreement (GTA) with RIL transport D6 gas from Bhadbhut in Bharuch district to RIL's refinery in Jamnagar in March, 2007.
However, when RIL began transporting gas from its KG-D6 field to its refinery, GSPL did not invoke GTA terms and instead charged RIL a single rate on the quantity transported, thereby passing of undue benefit of Rs 52.27 crore to RIL.
Similarly, it has also highlighted that Gujarat Urja Vikas Nigam Ltd (GUVNL) was involved in non-adherence to terms of the power purchase agreement (PPA), which led to short recovery of penalty of Rs 160.26 crore and passing of undue benefit to Adani Power Ltd (APL).
