Fireworks in the offing as CAG to table three explosive reports

The United Progressive Alliance (UPA) government, facing an onslaught from the opposition and civil society groups on the issue of black money, can expect more fireworks with three explosive reports from the Comptroller and Auditor General (CAG) due this week.

The CAG is expected to table three reports critical of the government in three crucial infrastructure sectors: the allocation of coal blocks, allocation of land to Delhi International Airport Ltd (DIAL) and the power ministry's ultra mega power project (UMPP) scheme.

Reports by the constitutional body, which are often leaked these days before being tabled in parliament, have embarrassed the UPA. The most explosive – and much-awaited – CAG report is on the allocation of coal blocks.

A leaked draft of the report – which was later virtually disowned by the CAG – had indicated that private companies had enjoyed 'undue benefits' amounting to Rs10.6 lakh crore in the allocation of 155 blocks between 2004 and 2009, the first five-year term of the UPA government. The report had assumed significance because Prime Minister Manmohan Singh had held the coal portfolio between 2006 and 2009.

But according to further leaks of the CAG report in recent days, the final report has exonerated the prime minister, though it has blamed the coal ministry. The CAG has also reportedly scaled down the loss to the exchequer to Rs1.86 lakh crore in the allocation of the 155 blocks.

The CAG, it is learnt, also wants the government to set up a single-window mechanism – on the lines of the Foreign Investment Promotion Board – to clear projects in the coal sector. It also wants the government to introduce a system of incentives and disincentives to boost coal production by encouraging higher output by miners.