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Debt-ridden state public sector undertaking, Gujarat State Petroleum Corporation Ltd (GSPC) once again came under fire from the Comptroller and Auditor General of India (CAG) for causing a massive ₹ 17,061-crore loss to the state exchequer. GSPC was the biggest among the 14 loss-making SPSUs of the Gujarat Government.
According to the CAG report tabled in the State Assembly late on Wednesday, GSPC Ltd booked impairment loss of ₹ 14,923.54 crore on 80 per cent Participating Interest and 10 per cent in KG-OSN-2001/3 block (KG Block). The total loss of the company for the year 2016-17 stood at ₹ 17,061.20 crore.
Hitting at the BJP-led Gujarat government, Congress spokesperson and chartered accountant Kailash Gadhavi said, "This is a serious negligence on the part of the authorities managing the company. The return on equity of the government companies have dropped to 0.27 per cent. If we calculate this loss, the return on equity will go negative, which is a serious issue."
The 77 working State PSUs had posted overall profit of ₹ 1,633 crore in 2015-16, which turned into aggregate loss of ₹ 14,764 crore in the 2016-17 due to exceptional loss of ₹ 17,061 crore by GSPC, CAG noted.
The CAG in its audit report stated that total equity of the State PSUs increased from ₹ 59,130.71 crore in 2012-13 to ₹ 85,112.91 crore in 2016-17. The return on equity in State PSUs ranged between 0.27 and 4.53 per cent during 2012-13 to 2015-16. "However, there was net loss in 2016-17. Therefore, the return on investment and equity was not computed in 2016-17," it added.
Notably, the Opposition Congress has been accusing the Gujarat government and the GSPC for corruption and massive loss to the State exchequer.
Last month, Saurabh Patel, State Minister for Energy had denied all allegations by the Congress regarding GSPC and said, "CAG Reports do not disclose any scam (in GSPC). GSPC has always acted as a responsible business entity and even the CAG has never ever alleged any intentional wrongdoing or irregularities in the conduct of business of GSPC," he had stated.
Patel had also clarified that GSPC has always been servicing its loans including payment of interest and repayment of principal amounts thereby ruling out any defaulted on any of its loan commitments. "GSPC has not been in default even for a single day," Patel had stated.
The latest CAG report revealed that total investment in the State PSUs has increased from ₹ 1,02,689.21 crore in 2012-13 to ₹ 1,49,499.29 crore in 2016-17. The return on investment ranged between 4.95-6.82 per cent during 2012-13 to 2015-16.
Meanwhile, CAG noted that out of the 77 working State PSUs, 54 earned profit of ₹ 3,648 crore, while 14 of them incurred losses of ₹ 18,412 crore including that of GSPC. The total turnover of these SPSUs stood at ₹ 1,11,953 crore, which is about 9.95 per cent of the Gross State Domestic Product for 2016-17.
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