CAG raises questions on delay in strategic disinvestment of government companies

Dec 11 2019 11:08 AM

The CAG has questioned the laxity in achieving the goal of strategic disinvestment of government companies by the government. The CAG believes that despite the selection of PSUs in 2017-18, the strategic disinvestment target of the companies has not been even reached. The CAG has also stated that the treasury incurred a loss of Rs 9471 crore in 2017-18 due to non-compliance with the government guidelines regarding dividend. The Comptroller and Auditor General of India (CAG), in its report on Public Undertakings presented in Parliament on Tuesday, said that the department responsible for disinvestment, Deepam and all administrative ministries need to make mutual coordination and more efforts to meet this goal. is. This will speed up the process of strategic disinvestment of the remaining ventures.

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In 2017-18, 24 ventures were selected for strategic disinvestment. But by 2018-19, only four of these ventures could be strategically disinvested. The government, meanwhile, has completed the process of strategic disinvestment of REC, but the CAG believes that it was disinvestment out of this list. Regarding the strategic disinvestment of HPCL, the CAG stated in its report that although the HPCL-ONGC deal was by CCEA Conformed to the set strategic sales standards. But its audit should be seen in the light that government equity was transferred from one government company to another government company.

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The CAG has also expressed dissatisfaction with the information received from Deepam in the inquiry related to the disinvestment of the company. According to the CAG, Deepam and the Ministry of Petroleum and Natural Gas did not provide adequate supporting sheets in relation to estimates of the company's free cash flow, debt inventory, and refinery margins. Apart from this, Deepam did not give factual answers to the questions asked in relation to the company's final valuation report.

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