800 Crore extra paid for Poor quality Coal

Tangedco imported poor quality coal during 2012-16, resulting in excess payment of Rs 813.68 crore, the CAG has found, recommending an investigation. The audit also found that the Tamil Nadu Generation and Distribution Corporation released Rs 5,767.13 crore to supplier of 60% of the coal consignments without obtaining a mandatory Certificate of Country of Origin (COO), a violation of its own tender conditions.

This planned conspiracy first identified by the Directorate of Revenue Intelligence in March 2016. “Imported coal’s procurement price was inflated by power generating companies and traders who supplied the coal to avail higher tariff compensation based on artificially inflated cost of coal.