Allocation of coal blocks and augmentation of coal production by Coal India Limited: draft performance audit

The performance audit covered the Eleventh Five Year Plan period, i.e. from 2007-08 to 2011-12 (upto November 2011) including allocations of coal blocks by Ministry of Coal from 2004 onwards. For this purpose, records of MoC, CCO, CIL and its subsidiaries were test-checked in audit during September 2011 to November 2011. The entry conference with CIL and its subsidiaries was held on 16 September 2011 and with MoC on 31 October 2011 and the exit conference was held on 9 February 2012. The objectives of the performance audit were to obtain assurance that: the procedures followed for allocation of coal blocks for captive mining ensured `objectivity’, `transparency’ and reasonable share to the gain to the allocattees; the coal blocks allocated for captive mining augmented production of coal as envisaged; CIL augmented its production capacities as planned.