CAG creates separate vertical for auditing of 1,600 state public sector units

Comptroller and Auditor General of India
(CAG) has set up a separate unit for auditing of about 1,600
public sector undertakings
(
PSUs
) run by various state governments for faster auditing and achieving greater efficiency.
"Very recently a separate vertical has been created. An order has been issued. Once this vertical comes up, one location will have positions for auditing only state PSUs of a particular state," Deputy CAG K S Subramanian (HR, IR, Coord and Legal) said.
This will help in faster auditing of state PSUs and improving efficiency of public enterprises, he said, adding, this is similar to the Central Public Sector Enterprises which are audited by a separate vertical.
Currently, state PSUs are audited by members of senior management which has to do auditing of 4-5 states rather than one particular region, Subramanian said, adding, it takes time.
A separate vertical would help in consolidation of information of all state PSUs and it will be easy for stakeholders to compare, Deputy CAG A M Bajaj said.
Live Events
There are about 700 Central Public Sector Enterprises (CPSEs), 1,600 State Public Sector Enterprises (SPSEs), 485 Central Autonomous Bodies (CABs), and more than 700 State Autonomous Bodies.
Riding on the back of digital transformation, the office of CAG is working on expanding scope of remote auditing to enhance efficiency, transparency, and collaboration.
The planned integration of
Generative AI
and OCR in voucher verification reduces errors, boosts accuracy, and generates audit leads, while the Standardized Risk Assessment Model, powered by tools like IDEA and Tableau, ensures data-driven, risk-focused audit planning nationwide, Bajaj said.
"Our initial efforts at remote/hybrid audit of
GST
, stamp duty and registration and public works have been highly successful and encouraging. This has spurred us to fast-track such hybrid audits across the country by engaging with the executives to ensure that they achieve end-to-end digitisation of their work processes," he said.
In fact, he said, this would be one of the important agenda items at the upcoming State Finance Secretaries Conference planned in September 2025.
Clarifying the issue of hiring of empanelled
CA firms
for auditing of central autonomous bodies, he said the move will not undermine the autonomy of apex audit body but strengthen the auditing process.
He said the office of CAG is in the process of hiring CA firms for 30 stations or cities, and the list would be finalised in the next two weeks for co-option with the CAG team for auditing of central autonomous bodies.
"We have been auditing every year (autonomous bodies), but need has been felt to augment our audit effort with expert professionals wherever required," he said when asked for a reaction on a CPM MP objecting to hiring of CA firms claiming that it would dilute the independence of the CAG.
Madurai MP S Venkatesan (CPM) wrote a letter to
President Droupadi Murmu
on June 3 objecting to the CAG's move, claiming that it dilutes the independence of the CAG and principles envisaged by the Constitution.
The co-option of CA firms will strengthen the auditing process, he said, audit responsibilities have gone up manifold and autonomous bodies have become very big.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Hans India

2 hours ago

• Hans India

Metro Rail Phase 2 proposal submitted to Centre

Hyderabad: Taking a step further towards executing the Metro Rail project in the city, HMRL submitted the Metro Rail Phase 2 (B) proposal along with required documents and DPRs the Central government on the HMR officials, the proposal was duly approved by the State cabinet, this phase 2 (B) project consists of three corridors -- RGIA to Bharat Future City (39.6 km; Rs 7,168 crore), JBS to Medchal (24.5 km; Rs 6,946 cr), and JBS to Shamirpet (22km; Rs 5,465 crore). Thus covering a total length of 86.1km, this Phase 2 (B) project will involve a total investment of Rs 19,579 crore. Like the earlier submitted Phase 2 (A) project of five corridors (76.4 km), this Phase 2 (B) project is also proposed to be developed as a joint venture project of GoI and GoTG. As per the JV project norms of the Central government, the Phase 2 (B) cost of Rs 19,579 cr will have Telangana government's share of Rs 5,874 cr (30 per cent), Central government's share of Rs 3,524 cr (18 per cent); debt from international financial institutions of Rs 9,398 cr (48%) and a small PPP component of Rs 783 cr (4 per cent).

Time of India

8 hours ago

• Time of India

A year later, govt clears 4 of 6 town planning schemes proposed by PMRDA

Pune: The urban development department has cleared four of the six town planning schemes proposed more than one year ago by the Pune Metropolitan Region Development Authority, officials said on Saturday. Tired of too many ads? go ad free now Of the remaining two, the proposal for Maan-Mhalunge — once showcased as a model scheme in 2018 — is still under assessment. The Manjari Khurd-Kolwadi scheme was rejected on technical grounds, particularly in plot demarcation, for which the proposal will have to be re-submitted after making the appropriate changes, a PMRDA official said. The four approved proposals —Autade Handewadi, two in Holkarwadi, and Vadachiwadi — will cover a combined area of nearly 520 hectares. The department is expected to issue a formal notification for the clearances along with a rejection notice for the Manjari proposal, which will span 233.35 hectares, next week. A senior PMRDA official expressed frustration at the prolonged delay in receiving the nod. "We have no idea why it took so long. These are growth centres and should have been cleared much earlier." The delay, he said, impacted the region's pace of development. These six schemes will collectively cover more than 1,000 hectares. Notably, the Maan-Mhalunge proposal, which will cover around 250 hectares, was initially cleared, but had to be revised and submitted again after plots were found to be marked on flood lines. With the Lok Sabha and Assembly elections last year, there was no significant movement on the proposals. However, the recent PMRDA budget included in principle approval for 15 additional TP schemes, signalling a renewed push for planned urban growth. Tired of too many ads? go ad free now The schemes are strategically planned along the proposed 82-km ring road to enable organised development across 5,000 hectares in the Pune Metropolitan Region. Residents affected by the delay in implementation, such as Mohit Mehta from Manjari, voiced concerns. "If the scheme is rejected and must be re-submitted, then no project will begin this year. The land marked for development will remain in limbo," he said. In this scenario, builders too delay planning their projects, a Holkarwadi resident said. "If govt approves the scheme, it will benefit the area as infrastructure development can start and the ring road will ensure better connectivity," said a developer who plans to launch his project in Holkarwadi. Officials too warned that further delays in state clearance could stall the disbursement of Central infrastructure funds, thereby affecting project timelines. All the proposed TP schemes will be implemented on the Gujarat model, wherein landowners receive 50% of the developed land back. Central govt committed to funding Rs25 crore for each of these six schemes, while PMRDA allocated Rs125 crore from its own budget. The Vadachiwadi scheme will cover 134.79 hectares, Autade Handewadi 94.44 hectares, and the two Holkarwadi projects 158.19 hectares and 130.78 hectares, respectively.

Hindustan Times

2 days ago

• Hindustan Times

Coordinated efforts crucial to complete port projects in Maharashtra: Sonowal

Mumbai, Union Minister Sarbananda Sonowal on Friday emphasised the need for coordinated efforts between Central and state departments to expedite the completion of key port projects in Maharashtra. Coordinated efforts crucial to complete port projects in Maharashtra: Sonowal Chairing a joint meeting of central and state officials on port and coastal development in Mumbai, the Union Minister for ports, shipping, and waterways underlined the strategic importance of Maharashtra's maritime infrastructure and called for fast-tracking approvals for ongoing and proposed projects. State Minister for Fisheries and Ports Nitesh Rane, who also addressed the meeting, described the joint consultation as a "positive step" towards the state's coastal development and stressed the importance of timely permissions from Central agencies to ensure efficient execution and cost-effectiveness. "The meeting was held to coordinate between Central and state-level marine institutions. There was a detailed discussion on developing coastal infrastructure in Maharashtra. Sonowal ji directed officials to ensure that Central and state government agencies work in coordination to expedite the completion of projects in Maharashtra," he said. Senior officials from the concerned departments were present at the meeting. Sonowal said, "There are immense opportunities in the maritime and industrial sectors. Projects in the port sector of Maharashtra are crucial and should be fast-tracked with prompt approvals. Projects linking ports with rail and road networks should also be prioritised." He further stated that all projects approved under the Sagarmala programme in Maharashtra should be completed by 2026. Minister Rane said that better inter-departmental coordination would help secure approvals in a timely manner and reduce bureaucratic delays. "With smoother approvals, projects can be completed on schedule and within budget. Today's meeting was fruitful and is expected to give a major push to port development works in the state," he said. Key projects, including the Vaibhavwadi-Kolhapur railway project, Anandwadi port, Ro-Ro ferry services, water taxi initiatives, inland waterways, and jetty-related concerns, were discussed during the meeting. This article was generated from an automated news agency feed without modifications to text.