Gandhinagar, 3 April 2013

Gujarat government spokesperson ministers Nitin Patel and Saurabh Patel today said that in Comptroller and Auditor General (CAG) has in some cases done subjective audit instead of objective audit.

Following are some of the issues clarified by government spokespersons:

CAG has objected land allotment to ESSAR Power in Jamnagar, but it the allotment in this case is as per the state’s land allotment review policy and this method is considered near match to the actual value of the land in which developed and undeveloped areas are scientifically considered separate.

Land allotment to Kutch Coastal Power Gujarat Limited for power station has also been done through same method. How much weighate should be given for development aspect, during the process of valuation of land is decided as per this method. This method is not in implementation anywhere in the country.

-The land has been allotted to L&T for technology park near Vadodara for availability of skilled human resource. State government intends to generate technical manpower. CAG has not considered this constructive approach of state government.

-CAG has pointed out irregularities in 13 cases in MPSEZ Mundra. The state government had clarified this and stamp duty was collected from six units. In other cases, lease permission matter is in progress. CAG’s audit note on this issue at this time is inappropriate.

-On audit objections about land allotment to Raheja corporation, the govt has made it clear that before year 2000, concerned town planner’s valuation was considered as authentic evidence, while present government has for the first time decided the prices of land through a new valuation process involving local town planner, district valuation committee, chief town planer and state level valuation committee. Raheja Corporation has been allotted land as per this process.

-About CAG audit objection on land allotment to Ford India Limited, it is to be noted that the project has been considered Mega project and land valuation has been done as per that by state legal approval committee presided by Chief Secretary, that has senior secretaries as its members.

-About CAG audit objection on Essar Steel, Hazira, it has to be made clear that the final procedure of land allotment to this company has not completed. The state government has made this clear and therefore objection is inappropriate.

-Any decision on premium from L&T Hazira and Mitsubishi Japan joint venture can be taken after finalization of agreement of these two companies. Therefore CAG’s audit objection on the issue of premium is inappropriate.

-The state government has no intention to question CAG audit report’s credibility. CAG has admired the state government for its financial management and achievements, but only negative points are being raised and wrong propoganda is done against the state government.