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State-owned Rashtriya Chemicals and Fertilisers (RCF) had incurred about Rs 45 crore loss during 2007-12 on distribution of imported urea to states because of its improper estimate of various expenses, the Comptroller and Auditor General (CAG) said today.
"Improper estimation" of cost in bidding for the contract of handling and sale of imported urea resulted in loss of Rs 44.81 crore, the auditor said.
During 2007-12, RCF distributed 56.77 lakh tonne imported urea to various states governments on behalf of the Centre.
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"For this activity, the company incurred an expenditure of Rs 4,368.05 crore and could claim an amount of Rs 4,323.24 crore only from the Department of Fertilisers, resulting in a loss of Rs 44.81 crore against an estimated overall profit of Rs 28.39 crore," the report said.
CAG observed that the estimation prepared by the RCF for bidding was "deficient" as significant elements of cost such as inland freight charges, finance charges and shortages in handling and transportation were worked out "incorrectly".
