Disinvestment Ministry already replied to CAG report: Baijal

NEW DELHI: Disinvestment Ministry on Thursday said it has already replied to issues raised by the Comptroller and Auditor General in its preliminary report on valuation of Balco with its Secretary Pradeep Baijal justifying the deal on the ground that in such cases buyers decide the price.
When contacted about the CAG questioning the assumptions for valuation of Balco for sale of government''s 51 per cent equity, he said "the CAG had sent the preliminary report in October last year and we gave our total reply by December.
"Somebody has circulated the report now mischievously. After our reply we have not heard from CAG till now," Baijal said.
In its draft report on privatisation of Balco, CAG had observed that Global Advisor appointed for the purpose made questionable assumption for valuation through the method of discounted cash flow that could translate in an undervaluation of Rs 302 crore for the total equity in the company.
Asked about CAG''s comments on valuation, Baijal said, "we have explained valuation assumptions. These are subjective judgements. In a competitive market the buyer decides the price and in the BALCO case we had asked for open competitive bids."