Coalgate: CAG's appearance before Parliamentary panel may add fuel to opposition's fire

NEW DELHI: The Comptroller and Auditor-General ( CAG) is expected to explain to Parliament's Public Accounts Committee ( PAC) the methodology it adopted for calculating the loss in coal block allocations. This is expected to add fuel to the Opposition's fire against the government.

"CAG will brief the panel on his findings later this month," a PAC member, who did not wish to be quoted, said. CAG had said the government suffered a loss of 1,85,591.33 crore by giving away 8,282 million tonne coal free. CAG had noted that the government was not transparent in implementing the allocation policy.

Prime Minister Manmohan Singh had termed the CAG findings as "disputable and flawed". The PAC member said the panel will seek explanation from the PMO and the coal ministry after the briefing by CAG. PAC has sent out letters to the coal ministry seeking details of the allocation policy and its execution.

Congress MPs on the panel are certain to take on the CAG, as they consider its reports damning for the government's image. Senior leaders like Digvijaya Singh have accused CAG of partisanship. Singh had said CAG Vinod Rai was harbouring political ambitions. Although a significant section of the party back Singh, there are fears that an adversarial relationship with CAG will invite more troubles for the government.