GSPC posts Rs 170.6 bn loss, highest among Gujarat State PSUs: CAG report

Of the 77 working SPSUs, 54 made a combined profit of Rs 36.48 billion, while 14 of them, including GSPC, incurred losses totalling Rs 184.12 billion

The latest audit report by the Comptroller and Auditor General of India (CAG) has seen debt-laden Gujarat State Petroleum Corporation Ltd. (GSPC) emerge as the biggest loss-making state public sector undertaking (SPSU).

Among the 14 loss-making SPSUs under the Gujarat government, GSPC incurred the highest loss of Rs 170.61 billion.

The CAG report, tabled recently in the state assembly, showed that GSPC Ltd. booked an impairment loss of Rs 149.24 billion on 80 per cent participating interest and 10 per cent in KG-OSN-2001/3 block (KG Block).

The total loss of the company for the year 2016-17 stood at Rs 170.61 billion.

Out of the 77 working SPSUs, 54 earned profit of Rs 36.48 billion, while 14 of them incurred losses totalling Rs 184.12 billion including that of GSPC. The total turnover of these SPSUs stood at Rs 1119.53 billion, about 9.95 per cent of the Gross State Domestic Product (GSDP) for 2016-17.

The 77 working state PSUs together posted an overall profit of Rs 16.33 billion in 2015-16. However, given the high loss posted by GSPC, the aggregate loss of all the SPSUs ended up at Rs 147.64 billion in 2016-17.

Further, the CAG in its audit report stated that total equity of the SPSUs increased from Rs 591.3071 billion in 2012-13 to Rs 851.1291 billion in 2016-17. The return on equity in SPSUs ranged between 0.27 and 4.53 per cent during 2012-13 to 2015-16. "However, there was a net loss in 2016-17. Therefore, the return on investment and equity was not computed in 2016-17," the report stated.

Meanwhile, the report also showed that total investment in the SPSUs rose from Rs 1,026.89 billion in 2012-13 to Rs 1,494.99 billion in 2016-17. The return on investment ranged between 4.95-6.82 per cent during 2012-13 to 2015-16.