NTPC incurred Rs 6869 point 95 cr additional expenditure on coal procurement CAG

New Delhi. The government auditor Comptroller & Auditor General of India has red flagged multiple operational and procurement procedures adopted by NTPC regarding fuel management of coal-based power stations. 
 
According to CAG report on Fuel Management of Coal-Based Power Stations of NTPC Ltd, “The power stations incurred extra expenditure on procurement of coal at higher cost compared to the rates notified by Coal India during the period, 2010-11 to 2015-16.” The additional expenditure on procurement of coal by the power stations was seen to be ? 6,869.95 crore during this period according to the CAG report. 
 
CAG ahead raises doubts whether imported coal was ‘indeed superior to domestic coal’ even though NTPC incurred higher cost for procuring it. The report tabled in Parliament on Fridaysaid, “Coal used to produce one unit of energy remained the same, irrespective of whether imported coal was blended to a lesser or greater extent.” 
 
NTPC did not have a specific policy for importing coal according to the CAG audit. CAG notes that in the absence of a comprehensive policy, different approaches to key decisions were noticed.

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