CAG picks holes in coal mines auction by NDA govt

New Delhi:The CAG has picked holes in the e-auction of coal mines by the NDA government last year saying multiple bids by corporate groups through joint ventures orsubsidiaries did not give an assurance that potential level of competition was achieved in the first two tranches.

In a report tabled in Parliament today, the Comptroller nd Auditor General of India (CAG) said competition may have been restricted in auction of 11 coal blocks on account of multiple bids by corporate groups made through JVs or subsidiaries.

"Audit could not draw an assurance that the potential level of competition was achieved during...bidding of 11 coal mines auctioned in the first two tranches," it said.

In 11 out of 29 coal mines successfully e-auctioned in first and second tranche, a number of qualified bidders (QBs) in the e-auction stage were from the same company/parent subsidiary company coalition/joint venture (JV), CAG said.