Loss of Gujarat State Petroleum Corporation Ltd (GSPC), which was once projected as a major success, has turned State Public Sector Units (SPSU) net loss-makers during the fiscal 2016-17, said a report of Comptroller and Auditor General (CAG) of India. Net loss of all SPSUs stood at Rs 14,764.43 crore in fiscal 2016-17. GSPC incurred a loss of Rs 17,061.20 crore. This also resulted in negative return on investment for PSUs. It its report on Public Sector Undertakings for the year 2016-17, CAG stated that, of the 77 working PSUs, 54 earned profit of Rs 3,647.96 crore and 14 PSUs incurred loss of Rs 18,412.39 crore, resulting in a loss of Rs 14,764.43 crore compared to net profit of Rs 1,633.12 crore in 2015-16. GSPC led the chart of loss-makers with a loss of Rs 17,061.20 crore, followed by Sardar Sarovar Narmada Nigam Ltd (Rs 973.50 crore), Gujarat State Road Transport Corporation (Rs 184.45 crore) and Gujarat State Finance Corporation (Rs 117.18 crore). Major contributors profit include Gujarat State Petronet Ltd (Rs 737.79 crore), Gujarat Mineral Development Corporation (Rs 445.98 crore), Gujarat Gas Ltd (Rs 303.33 crore), Gujarat Industrial Development Corporation (Rs 293.38 crore), Gujarat Energy Transmission Corporation Ltd (Rs 284.79 crore). As on March 31, 2017, the investment (capital and long-term loans) in 91 State PSUs (including those not functional) stand at Rs 1,43,217.84 crore. Of this, Rs 1,42,417.16 crore worth of investment is in 77 functional PSUs. Fifty-four PSUs earned a profit of Rs 3,647.96 crore and 14 incurred net loss of Rs 18,412.39 crore. At a time when privatization is a norm, the investment in PSUs increased from Rs 1,02,689.21 crore in 2012-13 to Rs 1,49,499.29 crore in 2016-17, a rise of 45.58 per cent in four years. The Return on Investment (RoI) during these years fluctuated between 4.95 per cent and 6.82 per cent. Similarly, total equity of SPSUs rose from Rs 59,130.71 crore to Rs 85,112.91 crore. The return on equity has also reduced from 4.53 per cent to 0.27 per cent. In fact since PSUs had incurred net loss in 2016-17, the return on investment was negative for the year. SSNNL’s faulty power demand Sardar Sarovar Narmada Nigam Ltd finalised electricity contract demand without considering the progress of civil work and pumping stations, which led to a loss or Rs 47.91 crore, said the CAG report. The accounting watchdog said that the payment towards demand charges was avoidable, but in spite of that payments were made resulting in a loss to the state exchequer. Land deal: UGVCL incurred Rs 78.45 cr Uttar Gujarat Vij Company Limited (UGVCL), the distribution arm of the state government in electricity distribution, lost Rs 78.45 crore in a land deal, even though it was aware that there are constraints in construction, which led to blockage of funds, said the CAG report. The report said GIDC allotted additional plots demanded by an allottee at discounted rates.

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