CAG Initiates ‘Theme Audit’ into NTPC Mining Operations Following High Court Advocate’s Legal Notice

RANCHI: The Comptroller and Auditor General of India (CAG) has launched a rigorous “Theme Audit” into the coal mining management of NTPC. This decisive action follows a formal legal notice served on April 2, 2025, by Jharkhand High Court Advocate Naveen Kumar Singh, representing petitioner Mantu Soni (alias Shani Kant).

The audit is being executed by the Directorate General of Audit (Mines), Kolkata, as part of the 2025-26 Annual Audit Plan. This specialized probe aims to uncover potential financial leakages and procedural breaches within NTPC’s coal wing.

Focus of the Investigation

Unlike standard oversight, this Theme Audit provides a deep-dive analysis into specific operational “themes.” The DGA (Mines) is currently scrutinizing five critical areas:

Contractual Transparency: A thorough review of the selection process for Mine Developer and Operators (MDOs) to ensure compliance with government procurement norms.

Production vs. Targets: Assessing whether coal output matches the timelines mandated by the Ministry of Coal.

Cost Benchmarking: Analyzing coal extraction expenses against current market rates to identify inflated costs.

Safety & Labor Standards: Auditing the quality of safety measures and the welfare of the workforce employed at mining sites.

Environmental Compliance: Verifying adherence to Environmental Clearance (EC) protocols.

The Legal Catalyst
The audit was triggered after Advocate Naveen Kumar Singh’s notice alerted the CAG to specific irregularities. The investigation is reportedly using the discrepancies highlighted in the legal notice as its primary reference point. By comparing data across various mines, the CAG intends to pinpoint systemic failures in NTPC’s mining governance.
This high-level intervention marks a significant step toward accountability in the coal sector, with the audit findings expected to influence future mining policy and contractual frameworks.