Pointing out that almost 15 per cent of the State Public Sector Undertakings (SPSUs) in Gujarat are inactive --- either defunct or under liquidation --- the Comptroller and Auditor General of India (CAG) has asked the state government to revive or wind them up.
Stating that there were 101 SPSUs in Gujarat under its audit jurisdiction for the financial year 2022-23, CAG in a report tabled in the Gujarat legislative Assembly on Friday said 15 SPUs were inactive, of which six were under liquidation; BISAG Satellite Communications was the latest government controlled entity to go under liquidation.
Other entities that are already under liquidation include shipbuilding firm Alcock Ashdown (Gujarat) Ltd, Gujarat Communication and Electronics Ltd, Gujarat Leather Industries Ltd, Gujarat Small Industries Corporation Ltd and Gujarat State Textile Corporation Ltd. Some of the SPSUs have remained inactive for more than two decades. For instance, the Gujarat Dairy Development Corporation Ltd has not been operational since 1999. Similarly, Gujarat State Machine Tools Corporation Ltd and Gujarat Trans-Receivers Ltd have not been operational since 1997-98 and 1998-99, respectively.
“These inactive SPSUs have investment of ₹498 crore, which includes capital of ₹180 crore and long-term loans of ₹317 crore. This is a critical area as investment in inactive SPSUs no more contribute to economic growth in the state,” the audit watchdog observed in its ‘State Finances Audit Report.’
“The Government may review the inactive government companies and take appropriate decisions on their revival/ winding up,” it added.
Of the 21 SPSUs in Gujarat whose net worth has eroded completely, are three GIFT City companies --- GIFT SEZ Ltd, GIFT Power Company Ltd and GIFT Collective Investment Management Company Ltd --- with total accumulated losses of ₹27 crore being merged with the parent company, Gujarat International Finance Tec-City Company Ltd from April, 2022.
Gujarat State Petroleum Corporation Ltd with a net profit of ₹2,987 crore, Gujarat Gas Ltd (₹1,525 crore), Gujarat Energy Transmission Corporation Ltd (₹1,256 crore) and Gujarat Mineral Development Corporation (₹1,212 crore) were among the top profit-earning PSUs in the state in 2022-23.
Similarly, Sardar Sarovar Narmada Nigam Ltd with a net loss of ₹1,156 crore, Gujarat Metro Rail Corporation Ltd (₹320 crore loss) GSPC LNG Ltd (₹215 crore loss) were among the top loss-making SPSUs in Gujarat. “The Gujarat Government may review the functioning of all loss-making SPSUs and take necessary steps to improve their financial performance,” CAG added.