Gujarat government unduly favoured Reliance, Adani: CAG report

GANDHINAGAR: The Comptroller and Auditor General ( CAG) — the country's apex auditing agency — has slammed the Gujarat government in its five different reports, for severe mismanagement of the state's financial resources.

The reports highlight irregularities amounting to more than Rs 25,000 crore, which includes what the CAG says was around Rs 1,500 crore in undue benefits to certain companies, including Reliance Petroleum, Essar Power and the Adani Group.

The reports were tabled in the assembly on Friday, the last day of the budget session.

In its audit report on the 'Economic Sector', CAG noted that the Gujarat Maritime Board applied incorrect wharfage rate under the Captive Jetty Agreement "with Reliance Petroleum Ltd, which resulted in short recovery of Rs 649.29 crore to the government."

CAG also noted that the Gujarat Urja Vikas Nigam Ltd (GUVNL) did not fix delivery points after the finalization of power purchase agreement, resulting in "undue benefit of Rs 587.50 crore to Essar Power Gujarat Ltd."

CAG said the non-monitoring "of the construction quay in phase 1 of Adani Group-owned Mundra port led to short recovery of Rs 118.12 crore."

CAG censured the Gujarat government for excessive payments to solar power companies in the state. It noted, "...contracting excess capacity under solar policy by the GUVNL led to excess burden of Rs 473.20 crore on the consumers of the state."

In the report on the state's macro-financial management, 'State Finances', CAG observed, "...the non-submission of utilization certificates of Rs 9,121.46 crore indicated the lack of proper monitoring by government departments in utilization of grants."

In the same report, CAG criticized the Gujarat government for poor financial management and budgetary control. It noted that in two instances, grants totalling Rs 13,049.67 crore remained unused. CAG said, "...budgetary control should be strengthened to avoid deficiencies in financial management."