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Goa’s Four PSUs turn white elephant, continues accumulating loses

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Panaji: Amidst the attempts to have fiscal discipline, the four Public Sector Units including – KTCL, Handicraft Corporation, GEL and GAAL have turned out to be white elephants accumulating year-on-year loses.

The CAG report has pointed  out that Goa’s four public sector units (PSUs) have shown higher quantum of accumulated loses than the capital investment resulting in negative worth of Rs 154.32 crores.

 The Comptroller Auditor General (CAG) 2017-18 report which was tabled during legislative assembly session on Friday has revealed that despite fund infusion in these PSUs in the form of interest free loans, the entire capital investments in them has been eroded, resulting in negative growth.

Goa Handicraft, Rural and Small Scale Industries Development Corporation (GHRSSIDC), Kadamba Transport Corporation (KTC), Goa Electronic Limited (GEL) and Goa Auto Accessories Limited (GAAL) have plunged into financial red situation as per the CAG report.

The report was tabled by chief minister Pramod Sawant on Friday.

Out of 17 PSUs,  the state government infused funds in the form of equity long term loans and grants or subsidiaries in 15 only to the tune of Rs 303.95 crore.

The CAG report mentions that “as per the latest finalized account of three working PSUs and one inactive PSU (GAAL), a higher quantum of accumulated loses than the capital investment showed that the overall capital had entire eroded resulting in negative net worth of Rs 154.32 crore.”

The report mentions that a negative worth idicates that the entire investment by the owners (government) has been wiped out by accumulated loses and deferred revenue expenditure.

The CAG has further audited that of these four PSUs, the maximum net worth erosion was in KTC pegged at Rs 118.16 crore followed by GEL which was Rs 19.06 crore.

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