Mumbai: The Comptroller & Auditor General (CAG) report on coal block allocation will have no impact on the power sector, Union Power Minister M Veerappa Moily said on Tuesday.

The Central auditor's assessment of notional loss of Rs 1.86 trillion and holding the UPA government responsible for the same is not right as the Coal Ministry took the decision in accordance with the law, he told reporters on the sidelines of a CII conference.

The CAG report had estimated a gain of Rs 1.86 trillion to private firms in the allocation of 57 coal blocks between 2005 and 2009 without competitive bidding.

The minister said that the UPA government was in no way linked to the decision to give away coal blocks without competitive bidding.

"The applications for coal block allocations were examined and evaluated by a steering committee with representatives from states, Coal Ministry and coal companies," he said.

On power generation target, he said the 12th Plan target is to add 84,000 MW.

Commenting on opposition from West Bengal Chief Minister Mamata Banerjee over the issue of FDI in multi-brand retail, Moily said, any big reform faces challenge and opposition, but change needs to happen.

"When VAT was introduced many states opposed it but slowly they adopted the same," he said.

"It (FDI in multi-brand retail) is a strong decision we have taken and this is going to transform the entire economic scenario," the minister added.

He also sought the cooperation and support from the corporates for the reform process, which the government initiated last week.

On the financial problems of the Deccan Chronicle Holdings Ltd, Moily, who also holds the Corporate Affairs portfolio, said, his ministry has already asked regional Registrars of Companies (ROC) to initiate a preliminary investigation into the books of the company on the basis of a complaint and will soon submit its report to the Ministry.


Latest News from India News Desk