This Article is From Apr 03, 2013

Narendra Modi's government gave undue benefits to corporates, says auditor

Gandhinagar: The Gujarat government headed by Narendra Modi has been accused of conferring illicit favours on large corporates, resulting in losses of several crores for the state. The allegation has been made by the state's auditor in a report that was shared yesterday with the state assembly.

The Comptroller and Auditor General (CAG) finds that companies like Larsen and Toubro, Ford India and Essar Steel were allotted huge plots of land for their factories at cheap prices, leading to losses for the state.

The auditor also said that Adani Power was allowed to deviate from the terms of an agreement to buy power from a state-run company, allowing the company to benefit at the state's expense.

Gujarat Finance Minister Nitin Patel said, "It's not ascam; there are some irregularities. The CAG report will be reviewed by theassembly's Public Accounts Committee and after it takes a decision, thegovernment will work in accordance."

However, the Congress reacted sharply, saying this speaks of BJP's "double standards."

"In Delhi, the BJPdoesn't let Parliament work because of a CAG report, and here in Gujarat, a CAGreport that speaks about the scam by the state government is tabled on the lastday," Congress leader and former chief minister Shankersinh Vaghela said.


The economic development of Gujarat by turning it into an industry-friendly destination has been stridently emphasised by Mr Modi as the reason for his re-election for a third time in December. His victory has enabled his supporters to demand that he be named the BJP's presumptive prime ministerial candidate.

The party has not acquiesced, but over the weekend, Mr Modi's national stature and growing influence was acknowledged as he became the only chief minister to be inducted into the BJP's parliamentary board - a 12-member core group that steers the party.  

 Mr Modi's speeches in the last two months have been heavily punctuated with his development mantras - P2G2 (Pro-People Good-Governance) and IT + IT = IT ("Indian Talent + Information Technology equals India Tomorrow").
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