CAG flags inventory handling lapses at SAIL
Advt
Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox.
Get updates on your preferred social platform Follow us for the latest news, insider access to events and more.
The Comptroller and Auditor General (CAG) of India has flagged discrepancies in inventory handling practices of Steel Authority of India Limited (SAIL) from 2016 to 2023.According to the auditor's report tabled in the Rajya Sabha on Tuesday, this led to loss of time and money at the public sector undertaking during this period.The CAG found that faulty price fixation adopted by SAIL in the agreement for sale of blast furnace slag, a by-product of steel-making process, was detrimental to the financial interest of the company.Sale of slag at a lower rate resulted in inability to earn revenue of ₹441.40 crore between 2016 and 2023. 'Market price of slag was between ₹500 and ₹1,220 per tonne during 2009-14, whereas the rate provided in the agreement was between ₹336.65 and ₹444.24 per tonne,' the CAG said in a statement. The slag was provided by Bokaro Steel Plant during this period.Highlighting another anomaly, CAG said SAIL had not fixed any benchmark for inventory carrying cost per tonne of raw material, semi-finished material and finished goods. This is even though on an average, SAIL had an inventory of ₹21,698 crore from 2016-17 to 2022-23, which constitutes about 67 per cent of its current assets.SAIL also failed to maintain stock levels of raw materials like iron ore, coke and sinter due to which blast furnace was put under off-blast state, resulting in inability to produce 932,000 tonnes of hot metal and earn potential revenue of ₹1,231.52 crore at Rourkela, Bokaro and Durgapur plants, the auditor noted.According to CAG, while all five integrated steel plants of SAIL have implemented SAP-ERP system, it was yet to be implemented in all units or offices of SAIL.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
5 hours ago
- The Hindu
Karnataka is open, ready to partner with the world, CM tells diplomats
Karnataka Chief Minister Siddaramaiah on Friday announced that the Bengaluru Tech Summit, 2025, will be held from November 18 to 20 at the Bangalore International Exhibition Centre, and told diplomats of different countries that Karnataka is 'open and ready to partner with the world.' Speaking at 'Bridge to Bengaluru', a dialogue with diplomats on global innovation alliance for technology as a prelude to India's flagship technology forum, in New Delhi, the Chief Minister said, 'Whether through technology, tourism or talent, we see global collaboration as the path to shared success.' He said the Bengaluru Tech Summit hosted Nobel Laureates, world leaders, and innovators in the past year. 'This year, we expect over 1,00,000 attendees, 1,200 exhibitors, and 600 speakers from 60 countries.' Inclusive growth Noting that Karnataka is committed to inclusive growth, Mr. Siddaramaiah said innovation districts in Bengaluru, Mysuru, and Belagavi would boost research and jobs. Initiatives like fintech in Mangaluru and drone development in Hubballi-Dharwad have shown balanced progress in the State. 'The Tech Summit is a chance to connect, collaborate, and shape a shared future,' he said. The Chief Minister said Karnataka is an economic powerhouse with a GSDP of $337 billion, India's fourth-largest economy, contributing nearly 9% to the national GDP. Bengaluru is a global tech leader, ranked among the top 15 start-up ecosystems worldwide. It hosts over 18,000 start-ups, including 50 plus unicorns, and 40% of India's Global Capability Centres, with R&D hubs from companies like Bosch, Intel, and SAP. Skilling youth 'Through programmes like NIPUNA Karnataka, we are training over 1,00,000 young people in skills like AI, cybersecurity, and biotechnology, partnering with global leaders like Microsoft and Accenture', Mr. Siddaramaiah said.
Hindustan Times
12 hours ago
- Hindustan Times
Social Security change coming in August: SSA to roll out new policy. What to know
The Social Security Administration (SSA) will introduce a new multi-factor authorization policy starting mid-August. The agency plans to roll out a new Security Authentication Pin (SAP) to protect beneficiaries' personal accounts. Initially, the move drew sharp criticism from advocates who suggested that the in-person visits required to facilitate such a shift would put people with disabilities, senior citizens, and rural communities at risk of being left out. However, the SSA has provided clarification in this regard. Social Security Administration is rolling out a major change in August: Here's all you need to know about it(REUTERS) SSA clarifies the need for in-person visits In response to concerns, the agency confirmed that in-office visits would not be mandatory for those willing to opt into the SSA's latest security provision. 'The filing with OMB will be amended to clarify that the use of the Security Authentication PIN (SAP) feature is entirely optional,' a spokesperson for the agency told Newsweek on Thursday (July 31). 'We are encouraging my Social Security account holders to use the enhanced SAP feature to quickly and securely verify their identity when calling the National 800 Number. Beneficiaries and my Social Security account holders are not required to set up or have a SAP for identity verification or manage their benefits over the phone – when calling the National 800 Number, they will continue to use the existing identity verification process.' Why the sudden change? The SSA had initially planned on keeping the verification process open only for those willing to visit their nearest office, removing the option to do the same over a phone call. However, this would have added 3.4 million office visits to the SSA's schedule, per the outlet. Due to recent staffing cuts, 1 SSA employee is expected to serve 1,480 beneficiaries, as per AFGE's estimates, which implies that this policy would have overburdened the workforce as well. Now, the option to verify the same over the call is also available. In terms of changes, the agency has now started withholding up to 50% of benefits in case of overpayments. Improper payments usually occur due to miscalculation, failure to update status, or false income reporting. A beneficiary can ask for a waiver if they are facing financial troubles or are granted the option to appeal and request smaller withholdings. Beneficiaries must keep checking their notices and emails to be updated in case they are included in these categories. With contribution from Stuti Gupta
NDTV
18 hours ago
- NDTV
90% Of Farmers Fund Used To Fuel Cars, Not Crops In Madhya Pradesh: CAG
A fund meant to support farmers in their time of need was instead spent largely on fueling and maintaining government vehicles for five long years. The Comptroller and Auditor General of India (CAG) dropped this political bombshell in the Madhya Pradesh Assembly on Thursday, revealing that the Fertilizer Development Fund created for farmers' welfare had become a virtual fuel tank for bureaucrats' cars. From 2017-18 to 2021-22, across three state governments - two BJP regimes led by current Union Agriculture Minister Shivraj Singh Chouhan and a 15-month Congress regime under Kamal Nath - 90 per cent of the Rs 5.31 crore fund (Rs 4.79 crore) was spent on vehicles, drivers' salaries, and maintenance at state and district levels. The actual benefits to farmers, such as fertiliser subsidies during natural calamities, training, or agricultural equipment, amounted to a mere Rs 5.10 lakh. At the state level alone, Rs 2.77 crore was spent, including a staggering Rs 2.25 crore on just 20 vehicles. The CAG stressed that the Fertilizer Development Fund's (FDF) original mandate was to provide critical assistance to farmers, strengthen Primary Agricultural Credit Societies (PACS), and improve fertiliser management, not to become a transport budget. The rot ran deeper. The CAG revealed that the MP State Cooperative Marketing Federation (Markfed) failed to pass on supplier rebates on Diammonium Phosphate (DAP) and Muriate of Potash (MOP) fertilisers to farmers, burdening them with an extra Rs 10.50 crore. In 2021-22, buying fertilisers at high rates and selling them cheaper to farmers led to a Rs 4.38 crore loss for Markfed, a blow ultimately borne by the public exchequer. Defending the spending, the Cooperation Department's principal secretary claimed in February 2024 that vehicles were necessary for "monitoring and supervision" of fertiliser distribution. But the CAG dismissed this as unacceptable, saying vehicle expenses had overshadowed FDF's actual priorities. Perhaps most shockingly, the government never assessed fertiliser needs using soil data, crop patterns, or district-level inputs. Instead, allocations were based on last year's consumption, ignoring vast areas under vegetables and horticulture from 2017-22.
