According to a CAG report, State Trading Corporation (STCI) and MMTC increased the transportation cost of coal for NTPC during 2008-11 by choosing the wrong choice of ports for import of the fuel.

According to a recent report of the Comptroller and Auditor General (CAG), both the state trading corporations imported coal for NTPC from the ports other than those which involved least total transportation cost (ocean freight plus inland freight).

The report shows that NTPC had to bear excess cost to the tune of Rs 698.81 crore on account of supplies through non-optimum routes and such supplies were made without any permission from the company.

A total of 11.95 mn t of imported coal was supplied by STC and MMTC to various power stations of the company from the ports other than those which involved least total transportation cost, the report notes.

NTPC had imported over 20 million tonne of coal through State Trading Corporation and MMTC from December 2008 onwards for its power stations.

The report also blamed NTPC as the latter cleared the bills from the two public sector companies even when there was a change of port. It did not insist on prior authorisation. ?It did not impress upon them to seek its prior permission,? the auditor has argued.