CAG objects to Guj development agenda, says Govt helping infra Cos
 Source : News Bharati English  Date : 03-Apr-2013

CAG objects to Guj development agenda, says Govt helping infra Cos

Gujarat Development model

Gandhinagar, April 3 : CAG has pointed to `some concessions’ made to infra companies by Gujarat Govt in its report tabled today in assembly. Forgetting its own deeds of blatant corruptions at centre, the Gujarat Congress party hastily tried to corner the Modi Govt in the state using the CAG report tabled in state assembly today. While Govt officials were cautious while commenting about the report, Congress, as always, tried to twist the facts to its own benefits.

There are three main issues in the CAG report tabled in the assembly today : GSPL passing `undue benefits’ to RIL, Gujarat Urja Vikas Nigam Ltd (GUVNL) making short recovery of penalty from Adani Power and Govt giving land to infra projects like forging plants & steam generators of nuclear power plants.

CAG has pointed to some losses to public exchequer. The points are :

  • "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 report said. 
  • Gujarat Urja Vikas Nigam Ltd (GUVNL) did not adhere 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). 
  • The report also alleged that the state government tweaked rules to grant land to automaker Ford India and engineering and construction major Larsen and Toubro’s steam generators & forging plants.

Points to note :

  • The rights to allocate land are with state Govt.
  • The state Govt has not given away land for free or nominal charges, but had merely made some concessions for the benefit of the industry & employment.
  • The Govt has not `acquired’ the land at govt rates from the local owners but just facilitated the deals faster & the local owners of the lands had not been ditched; they got the market rates for their lands.
  • The Congress & other non-BJP govts in other states & center had even given away valuable lands to the companies & relatives of Congress leaders at nominal charges or free, `acquiring’ it from the poor farmers – like Lavasa in Maharashtra, Vadhra’a land deals in Haryana & elsewhere.
  • State Govt has the right to make some concessions, which are efficiently used in Gujrat making the deals beneficial to all the parties.   

It’s noteworthy that the L & T’s plants are manufacturing important engineering parts for nuclear power plants of the nation.

Congress has alleged ‘collusion’ between the State and corporate houses. Congress spokesman Manish Doshi said, "We have been raising the issue of collusion between corporate houses and the state government at every forum. The corporate houses get undue favours from the state government and in turn they praise the Modi government."

Looking at the `allegations’ CAG made, one can say that these are mere perceptions as the right to allocate the land for such type of projects lie with state govt and looking at the numbers given by the CAG itself, one can also say that the Gujrat govt has used those rights very efficiently, industry insiders say.