CAG report highlights management deficit AAI, Indian

New Delhi: The Comptroller and Auditor General (CAG) today pulled up public sector units for what it termed, deficiencies in their management, resulting in significant financial implications. The CAG reports, which were tabled in Parliament today, took up five sectors ~ Public distribution (Food Corporation of India); Civil Aviation (Airports Authority of India and Indian Airlines Limited); Insurance (Oriental Insurance Company Limited and United India Insurance Company Limited); Steel (Steel Authority of India Limited); and Petroleum and Natural Gas (Indian Oil Corporation Limited and Oil and Natural Gas Corporation Limited). The reports spoke of avoidable expenditure, idle investment and delay in commissioning of projects among a host of financial woes facing the PSUs.
In the civil aviation sector, the report highlights the loss of revenue suffered by the Airports Authority of India (AAI) due to failure to implement the directives on revenue collection. Due to lack of planning in the procurement and maintenance of inventory of spares, the report pointed out, Indian Airlines Limited incurred avoidable expenditure of Rs 68.40 crore on outsourcing of repair and overhaul of engines/modules and on leasing of engines. The company lost revenue of Rs 45.96 crore due to grounding of aircraft from July 2005 to June 2006.
15/05/07 The Statesman

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Categories: Airports May 2007, Indian May 2007