The Comptroller and Auditor-General of India has expressed serious concerns over the continuing erosion of the net worth of Gujarat PSUs Sardar Sarovar Narmada Nigam Ltd (SSNL) and Gujarat State Road Transport Corporation (GSRTC) while their accumulated losses have mounted to thousands of crore rupees.
In its audit report for the financial year 2021-22 which was tabled in the State Assembly last week, the CAG cited the SSNL’s loss of Rs 739.32 crore in 2020-21 and the accumulated losses at Rs 6,741.42 and said the Gujarat Government had invested a mammoth Rs 67,848.39 crore in it. The SSNL has been incurring losses since 2015-16, the CAG report added.
GSRTC’s net losses at ₹406.49 crore
Similarly, State public transporter GSRTC’s net loss had fallen to Rs 406.49 crore while the State had invested Rs 4,425.75 crore in it. The corporation has been incurring losses since 1973-74 and at the end of FY 2018-19, its accumulated losses stood at Rs 3,830.72 crore.
The CAG observed that the situation had come to such a pass that the GSRTC had not been able to deposit the passenger tax collected by it over the years. The tax was used by the corporation to meet its expenses. It has neither paid the arrears of the Seventh Pay Commission to its employees.
Possibility of RoI remote
The CAG has warned that the possibility of return on investment (RoI) in these companies is remote.
It pointed out the data, which shows that the total outstanding loans and advances of the State increased from Rs 12,235 crore in 2020-21 to Rs 13,151 crore in 2021-22.
Recovery of loans and advances was Rs 155 crore in 2021-22. However, interest receipts on loans and advances disbursed during the year increased by Rs 14 crore.
According to the CAG, out of the total loans of Rs 1,071 crore advanced during the year loans worth a whopping Rs 446 crore were disbursed by the Administrative Departments or the Finance Department without setting terms and conditions for the repayments and the rate of interest payable.
