CAG report on Purti: Congress demands Nitin Gadkari’s resignation

Our Bureau Updated - January 23, 2018 at 08:26 PM.

Nitin Gadkari, Minister of Road Transport and Highways

The Congress has demanded Union Minister Nitin Gadkari’s resignation a day after a Comptroller and Auditor General’s report named him in connection with violations in terms and conditions for subsidy schemes availed by Purti Sakhar Karkhana Ltd, promoted by the senior Minister.

Congress spokesperson Abhishek Manu Singhvi said Purti and Gadkari are alter egos. “He and his family are involved in the company. They gave false representation to Indian Renewable Energy Development Agency Ltd to avail themselves of loans for energy projects,” he said quoting the CAG report tabled in Parliament on Thursday.

He said the BJP used to create ruckus in Parliament over CAG reports which are not in public domain. “In this case, the CAG has presented its report. We demand a judicial enquiry into the issue. The constitutional procedure will follow as the Public Accounts Committee dissects the report,” he said and added that Gadkari should resign from the Cabinet to ensure a fair probe into the matter.

Singhvi added that the Congress will raise the issue in both the Houses of Parliament. The CAG had said in the report that the borrower (Purti) did not comply with the conditions for interest subsidy, that is the renewable energy project was to operate for a minimum of ten years after its completion.

“The purpose of grant of capital/interest subsidy by MNRE was to ensure generation of electricity through RE projects in return for the subsidy granted. IREDA did not have any mechanism to monitor the continuation of RE projects for the specified time period in the absence of which undue passing of the benefit of subsidy to the defaulters cannot be ruled out.

“Projects which subsequently converted to usage of 100 per cent fossil fuels were given the benefit of subsidy. Audit also found instances where MNRE agreed with IREDA not to recover the subsidy even in case of non-continuance of RE projects up to prescribed period of operation. This diluted the purposes for which the scheme was framed,” the report had said.

Published on May 1, 2015 17:10