The Comptroller and Auditor General (CAG) of India has flagged sick or loss-making state public sector units (PSUs) in Gujarat, suggesting either to revive them or shut them down.
The CAG, in its state finances audit report for the fiscal year concluding March 31, 2023, expressed apprehension over the escalating losses incurred by several loss-making state PSUs.
The report, presented in Gujarat assembly on the concluding day of the monsoon session on Friday, has advocated for either the resuscitation of the loss-making PSUs to render them lucrative or their dissolution to avert further losses to taxpayers.
The CAG observed there were 101 SPSUs, encompassing 65 government companies (including one dormant company), four statutory corporations and 23 government-controlled other companies in the state. One of the 65 government companies and four of the 23 other govt-controlled companies were inactive, it found, recommending that the Gujarat government should evaluate the performance of all loss-making SPSUs and implement necessary measures to enhance their performance.
The CAG stated, “Government may issue necessary directives to administrative departments to establish targets for individual SPSUs to submit financial statements punctually and to rigorously monitor the clearance of arrears. Govt may review the inactive govt companies and make appropriate decisions regarding their revival or winding up.”
Out of the 68 SPSUs (64 govt companies and four statutory corporations), 46 SPSUs generated a profit after tax of Rs 7,059.23 crore, while 15 SPSUs incurred losses amounting to Rs 2,010.06 crore and seven SPSUs neither incurred profit nor loss. Among the 23 government-controlled other companies, 17 made a profit of Rs 2,868.07 crore and 15 reported losses of Rs 446.91 crore in 2022-23.
Also Read: Private Medical Colleges In Gujarat Increase Fees By Up To 25%
