20 Gujarat PSUs incurred losses of Rs 1,111.85 crore: CAG

GANDHINAGAR: Twenty Gujarat state government-run public sector undertakings (PSUs) incurred losses of Rs 1,111.85 crore, according to a CAG report which was tabled in the Assembly today.

Commenting on the performance of Gujarat state government-run PSUs for the year 2013-14, the report stated that out of 72 working PSUs, 46 earned profits of Rs 3,363.96 crore, while 20 PSUs registered losses.

The major loss making companies are GSPC Pipavav Power Company Ltd (Rs 307.10 crore), Gujarat State Energy Generation Ltd (Rs 151.21 crore), GSPC Gas Company Ltd (Rs 134.68 crore), Gujarat State Road Transport Corporation (Rs 132.50 crore) and Gujarat State Financial Corporation (Rs 112.76 crore).

Major contributors to the profit include Gujarat State Petronet Ltd (Rs 658.98 crore), Gujarat Mineral Development Corporation Ltd (629.59 crore) and Gujarat Gas Company Ltd (Rs 611.93 crore).

However, the CAG also pointed out deficiencies in the functioning of these PSUs by mentioning that "though majority of the PSUs earned overall profits, there were instances of deficiencies in financial management, planning, implementation of projects, running of operations and monitoring".

The report stated that losses of more than Rs 3,200 crore within the last three years could have been avoided with better management of 72 working PSUs.

"A review of the latest three CAG audit reports shows that working PSUs incurred losses to the tune of Rs 3,278.28 crore in the last three years, which were controllable with better management," the report said.