Coal scam loss figure will also turn out to be mythical: FM

Coal scam

After terming CAG's estimate of Rs 1.76 lakh crore loss in 2G spectrum allocation as a "myth", Finance Minister P Chidambaram today said the projected Rs 1.86 lakh crore loss in coal blocks allocation would also turn out to be a "mythical" and "fancy" number.

Fresh from the just-concluded auction of 2G mobile phone airwaves that tested if the government could actually get what the official auditor had projected as loss from allocating the spectrum on first-come-first-serve basis, Chidambaram said the loss estimated in coal block allocation was "another fancy number".

"One (well respected) business house told me that they were allotted a coal block some seven-eight years ago. (But) he has not been able to enter that area yet for a variety of reasons. His officers (have) not entered the area yet. Now what's the point in saying that some loss is there. What is the loss?," he asked.

"Yes, if there is any irregularity in allocating the block then that's a different matter. But where is the loss," he asked.

CAG, which had in 2010 estimated that the exchequer lost Rs 1.76 lakh crore in revenue because the then Telecom Minister A Raja allocated spectrum along with mobile permits to 9 telecom companies without bidding, this year estimated a

loss of Rs 1.86 lakh crore in allocation of coal blocks since 2004.

"Ultimately that number which is being put out in the coal scam would also turn out to be mythical number," he said.

Chidambaram was, howe ver, quick to say there was "no sense of vindication or celebration" in the government over last week's 2G spectrum auction failure.

"Nobody feels vindicated, nobody is celebrating anything. All that we have pointed out is that Rs 1.76 lakh crore was a pure myth and I think everybody has candidly admitted that they bought this myth, we never bought this myth," he said.

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