CAG report flags Rs.4780 crore losses to Central Public Sector Enterprises

New Delhi [India], December 21 (ANI): Comptroller and Auditor General of India (C&AG) has flagged 42 issues in Central Public Sector Enterprises (CPSEs) which have financial implication of Rs.4,779.99 crore.
The Commercial Compliance Audit Report on CPSEs presented in Parliament on Tuesday flagged issues related to 32 CPSEs functioning under 10 different Ministries/Departments.
As per the CAG report, Indian Oil Corporation Limited suffered a loss of Rs.196.95 crore due to a violation of tax provisions in Andhra Pradesh.
"Indian Oil Corporation Limited collected Rs.262.60 crore of Turnover Tax from consumers in Andhra Pradesh in violation of legal provisions of Andhra Pradesh General Sales Tax Act, 1957 and afterwards settled the legal case with Government of Telangana by making payment of Rs.65.65 crore (25 per cent) against total imposed penalty of Rs.262.60 crore, thus resulting in undue enrichment to Indian Oil Corporation Limited by Rs.196.95 crore," CAG said in a statement.
The auditor noted that Oil and Natural Gas Corporation Limited (ONGC) suffered loss due to flaring of High-Pressure gas. During the period of 2012-13 to 2019-20, high-pressure gas valuing Rs.816.08 crore was flared in Mumbai High field due to non-availability of standby process gas compressors, power shut down and frequent tripping of process gas compressors.
CAG has rapped ONGC for providing undue benefit extended to private parties by awarding work in violation of CVC guidelines. "ONGC Videsh Limited awarded the work of auditing of its oil and gas reserves valuing Rs.10.60 crore to the private parties on nomination basis disregarding Central Vigilance Commission guidelines, thereby, extending undue benefit to the private parties."
It rapped NHPC for not levying penalty of Rs.11.61 crore for "generation of power lower than the minimum generation guaranteed in the contract agreement resulting in undue benefit to the contractor."
New India Assurance Company Limited's failure to obtain stop loss reinsurance cover resulted in loss of Rs.16.56 crore.
The company also failed to ascertain the Incurred Claims Ratio of the expiring policy while underwriting Livestock Insurance under National Livestock Mission for the year 2016-17 implemented in Telangana State which, resulted in low fixation of premium and subsequent loss of Rs.10.31 crore due to high claim ratio.
MSTC Limited imprudent financing resulted in non-recovery of dues of Rs.220.84 crore.
India United Textile Mill Limited (IUTML) suffered loss on account of extending undue benefit in fabric trading business to the group companies of strategic partner.
Airports Authority of India Limited (AAI) suffered revenue loss due to inadequate assessment of electricity load.
Air India Limited suffered loss in form of payment of penalty. Air India made penalty payment of Rs.43.85 crore to M/s Boeing due to persistent delays in return of removed component during the period July 2016 to December 2019. (ANI)