1. THE COAL SCAM
A STUDY!!
COMPARISON
THE SCAM OF SCALE
WHAT IT IS!
THE
GAINERS
THE
PROCESS THE PEOPLE
ESTIMATE RESPONSIBLE

2. • 1.87 lakh Crore Rupees
• Biggest scam in India by now
• Report authenticated by
Comptroller and Auditor
General of India

3. What is the coal scam?
A question many of you would have.
WHAT IT IS!
Simply put it is a corruption scandal
where-in the Comptroller and Auditor
General of India (CAG) office has
accused the Government of India for
providing the nation's coal deposits
to private and state-run entities in an
irregular and arbitrary manner instead
of publicly auctioning them off to the
highest bidder (as is usually done for
such entities), resulting in a loss of
approximately 186,000 crore
(US$33.67 billion) to the exchequer
during the period 2004-2009.

5. To g e t a n i d e a o f i t s
:
s c a l e l e t ’s s e e w h a t
this money
could have bought

6. Coal secretary had warned way back in 2004 about windfall gains to private
companies under existing scheme of allotment but PMO continued to delay process
of competitive bidding.
This delay meant that coal was allocated under the existing, opaque process giving
private companies huge monetary gains.
The CAG took into account average production cost per tonne of coal of all grades
produced in open cast mines of CIL as well as sale price as reference value in order
to calculate the financial gain to allottees.

7. Infographic Source: PTI (Press Trust of India)

8. BIGGEST ‘WINDFALL’ ALLOCATION
PRIVATE SECTOR Gains (Rs. Cr) PSU Gains (Rs. Cr)
Strategic Energy Tech System Ltd. 33,060 NTPC 35,024
Electro Steel Castings and Others 26,320 TNEB & MSMCL 26,584
Jindal Steel and Power Ltd. 21,226 JSEB & BSMDC 18,648
Bhushan Steel Ltd, Jai Balaji Ltd &
15,967 MMTC 18,628
Rashmi Cements
Ram Swarup Lohh Udyog, Adhunik
15,633 WBPDCL 17,358
Corp, Uttam Galva Steel
JSPL & Gagan Sponge
12,767 CMDC
16,498
JSPL/MCL/PL/Jindal 10,419 MSEB & GSECL 15,335
Stainless/Shyam DRI
Tata Steel Ltd. 7,161 JSMDCL 11,988
Chattisgarh Captive Coal Co Ltd. 7,023 MPSMCL 9,947
CESC Ltd & JAS Infrastructure 6,851 Note: Based on prices at time of allocation

9. ‘WHO’ IS RESPONSIBLE?
The Comptroller and Auditor General of India puts the Coal
Ministry and the government, particularly the PMO’s office
during the period 2004-2009 as responsible for the
misallocation of coal blocks. The coal ministry at the time was
headed by the current Prime Minister Dr. Manmohan Singh,
whose clean image has now come under question.