CAG finds irregularities of Rs 4,547 cr in PSUs | business | Hindustan Times
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CAG finds irregularities of Rs 4,547 cr in PSUs

The country's top auditor finds a major irregularities amounting to Rs 4,547.90 crore in the functioning of leading PSUs.

business Updated: May 16, 2007 00:36 IST

The country's top auditor has found major irregularities amounting to Rs 4,547.90 crore in the functioning of leading PSUs, including Food Corporation of India, Airports Authority of India, ONGC and Indian Oil Corp.

In a report tabled in Parliament on Tuesday, the Comptroller and Auditor General of India said the delay by ONGC in awarding contract for installation of unmanned platforms in the Bombay High oilfields resulted in re-tendering. This escalated costs by Rs 235.51 crore.

"The company incurred an avoidable expenditrue. Due to its failure in awarding the contract in time," it said.

In case of IOC and Bharat Petroleum Corporation Ltd, the auditor found these companies inaccurately calculated advance income tax. This resulted in "avoidable payment" of interest of Rs 130.91 crore by IOC and Rs 34.84 crore by BPCL during 2000-05.

FCI hired godowns from state warehousing corporations instead of Central Warehousing Corporation and incurred extra expenditure of Rs 348.61 crore, CAG said.

Besides, it did not properly use the space acquired and paid rent of Rs 287.90 crore for a storage capacity, which was kept idle from February 2002 to March 2006.

CAG also pulled up FCI for excess payment of Rs 406.21 crore on account of transportation charges for custom-milled rice.