CAG slams government’s strategic sale of one PSU to another

NEW DELHI: The Comptroller and Auditor General (CAG) has red flagged the government’s “disinvestment” programme involving the “strategic sale” of one public sector undertaking to another state-run entity, as well as flow of the proceeds from sale of shares held by the Specified Undertaking of UTI (SUUTI) into the kitty.
During 2018-19, there were four transactions involving the sale of Rural Electrification Corporation to PFC, Dredging Corporation to port trusts, National Projects Construction Company to WAPCOS Corporation and HSCC (India) to NBCC.
“Such disinvestments only resulted in transfer of resources already with the public sector to the government and did not lead to any change in stake of the public sector/government in disinvested PSUs,” the auditor said in a report tabled in Parliament. These “strategic disinvestments” had generated over a fifth of the disinvestment receipts of Rs 72,620 crore during the year.

In the previous year, the government had sold

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