CAG favours closure of 12 loss-making Gujarat Govt PSUs

Gandhinagar, Mar 30 (UNI) The total investment in the 56 working Public Sector Undertakings of Gujarat Government increased from Rs 37,710.41 crore as on March 31, 2005, to Rs 43,496.88 crore as on March 31, 2006.

Investment in 13 non-working PSUs as on March 31, 2006, stood at Rs 840.61 crore as against Rs 805.44 crore in 10 non-working PSUs as on March 31, 2005.

The CAG in its latest report said the government may either improve the performance of 12 loss-making PSUs or consider their closure as the outstanding losses were much higher. Some of the companies were incurring losses for the past five years.

The budgetary support in the form of equity capital, loans and grants/subsidies disbursed to the working PSUs decreased from Rs 5,372.04 crore in 2004-05 to Rs 4,282.12 crore in 2005-06.

The state government had contributed Rs 7.72 crore in the form of loan to two non-working companies during 2005-06. The total amount of outstanding loans guaranteed by the state government to all the PSUs as on March 31, 2006, was Rs 11,662.45 crore.

Out of 39 working government companies and four statutory corporations, nine working companies and three statutory corporations finalised their accounts for the year 2005-06.

The accounts of 30 working companies and one working statutory corporation were in arrears for periods ranging from one to two years as on September 30, 2006. Two non-working government companies finalised their accounts for the year 2005-06 and the accounts of four non-working government companies were in arrears for periods ranging from one to seven years as on September 30, 2006.

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