Not sure if HPCL was accurately evaluated when divested to ONGC: CAG

The Comptroller and Auditor General (CAG) of India has cast aspersions over the valuation of Hindustan Petroleum Corporation Limited (HPCL) when the centre was selling its stake to Oil and Natural Gas Corporation (ONGC) Limited.

The CAG has made this observation in the General Purpose Financial Report of Central Public Sector Enterprises (CPSEs). “From the replies of Department of Investment and Public Asset Management (DIPAM) and the Ministry of Petroleum and Natural Gas (MoPNG) and in absence of the supporting sheets (containing future estimations viz. free cash flow, debt inventory and estimation of refinery margins) provided by HPCL to the Technical Adviser for arriving at the price, audit could not derive an assurance that the price was correctly arrived at,” the CAG said.