Four public sector undertakings (PSUs) in Goa have recorded more losses than the capital investment, resulting in negative net worth of Rs 154.32 crore, a report by the CAG has revealed. The Comptroller and Auditor General (CAG) 2017-18 report, which was tabled in the state Legislative Assembly on Friday, said that despite fund infusion in the form of interest-free loans, the entire capital investment in the four PSUs has eroded.
As per the report, the Goa Handicraft, Rural and Small Scale Industries Development Corporation (GHRSSIDC), Kadamba Transport Corporation (KTC), Goa Electronics Ltd (GEL) and Goa Auto Accessories Ltd (GAAL) have plunged into the red. The report, tabled by Chief Minister Pramod Sawant, said that out of the 17 PSUs, 15 received equity long-term loans, grants or subsidiaries to the tune of Rs 303.95 crore from the state government.
"As per the latest finalised account of three working PSUs and one inactive PSU (GAAL), a higher quantum of accumulated losses than the capital investment showed that the overall capital had entire eroded resulting in negative net worth of Rs 154.32 crore," the report stated.
A negative net worth indicates that the entire investment by the government has been wiped out by losses and deferred revenue expenditure. The CAG has further said that at Rs 118.16 crore, the maximum net worth erosion was in the KTC, followed by GEL at Rs 19.06 crore.