CHAPTER 25

The Lok Sabha Secretariat requested (July 1985) all the Ministries to furnish notes, (duly vetted by Audit) indicating remedial/corrective action taken by them on the various paragraphs/appraisals contained in the Reports of the Comptroller and Auditor General of India (Commercial) as have been laid on the table of both the Houses of Parliament. Such notes were required to be submitted even in respect of paragarphs/appraisals which were not selected by the Committee on Public Sector Undertakings for detailed examination. The COPU in its 2nd Report (1998-99-12th Lok Sabha) while reiterating the above instructions recommended that follow up action taken notes duly vetted by Audit in respect of all the Reports of the C&AG of India (Commercial) presented to Parliament should be furnished to the Committee within six months from the date of presentation of the relevant Audit Reports.

In the Follow up Action on the Reports of the C&AG of India (Commercial) the COPU in its 1st Report (1999-2000 - Thirteenth Lok Sabha) has reiterated its earlier recommendation that Department of Public Enterprises (DPE) should set up a separate Monitoring Cell in the DPE itself to monitor the follow-up action by various Ministries/Departments on the observations contained in the Audit Reports (Commercial) on individual undertakings.

A review has revealed that inspite of reminders from Audit, the remedial/corrective action taken notes on the paragraphs/appraisals contained in the last five years’ Audit Reports (Commercial) relating to the PSUs under the administrative control of the various Ministries, as detailed in Appendix, have not been forwarded to Audit for vetting. Out of 673 paragraphs contained in the last 5 years Audit Reports on which ATNs are still awaited, 7, 30, 89, 147 and 400 ATNs are awaited for Audit Reports (Commercial) of 1998, 1999, 2000, 2001 and 2002 respectively. Out of 673 paragraphs on which ATNs are awaited, 134 paragraphs related to Ministry of Petroleum and Natural Gas, 67 paragraphs related to Ministry of Finance, Banking Division and 54 paragraphs related to Ministry of Finance, Insurance Division.