On the last day of the monsoon session of the Gujarat Assembly, the Comptroller and Auditor General (CAG) of India criticised the government of Gujarat for the financial condition of its various boards, corporations, and government companies.

As per the CAG report, 30 public sector undertakings incurred a loss of ₹2,456.98 crore, of which ₹2,276.72 crore was a loss incurred by only 6 public sector undertakings.

Undertaking making loss over ₹2,000 crore

The CAG report 2023 suggested that a total of 101 public sector units were under consideration, including four scientific corporations, 65 government companies, and 32 government-controlled companies. The report noted that there are irregularities in the presentation of financial statements.

According to the report, statements were not adhered to by 69 State Public Sector Undertakings (SPSUs) whose 188 accounts were in arrears.

CAG has noted that the government should set a target for the timely submission of financial statements for individual public sector undertakings of the state and clear the arrears.

The administrative departments should be given the necessary instructions to oversee the disposal. Moreover, the government should review the inefficient companies and make appropriate decisions for their revival or closure.

The government has invested in loss-making companies, including the Sardar Sarovar Narmada Nigam, which has accumulated losses of ₹7,898 crore as of 2023, with a total capital investment of 70,000 crore.

Similarly, the Gujarat State Petroleum Corporation (GSPC) NNGE Limited has accumulated losses of ₹599 crores and has shown a capital investment of ₹537 crores.

Top loss-making govt undertakings

In total, the state government has invested ₹1.25 lakh crores in equity and long-term loans against the total capital investment of ₹1.86 lakh crores in 101 public sector undertakings by the end of the 2023 financial year. Out of this, the outstanding long-term loans for 42 undertakings amounted to ₹24,115 crores.

The number of inactive loan accounts with the government stands at ₹833.30 crores trapped in these accounts. Loans given to various institutions and government officials in previous years have remained inactive, with no principal repayment and no interest payments in the last 14 years.

Inactive loan accounts

Key details of public enterprises

-Out of 15 non-functional public sector undertakings in the state, 5 have been liquidated.

-BISAG-N satellite communication was liquidated in the financial year 2022-23.

-The total investment in non-functional undertakings is ₹498.57 crore.

-69 undertakings have not issued outstanding financial papers.

-The total turnover of 58 public sector undertakings is ₹1.94 lakh crore.

-Public sector undertakings in the energy sector contributed the most to turnover at 75.91%.

-The government has provided long-term loans of ₹19,500.47 crore to 32 units.

-The total assets of 64 public sector undertakings are ₹3.97 lakh crore.

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