Gujarat government denies Mamata Banerjee's claim on GSPC

Kolkata: The Gujarat government on Friday brushed aside Bengal chief minister Mamata Banerjee’s allegation  that the loans extended to Gujarat State Petroleum Corporation (GSPC) by banks had turned out to be non-performing assets (NPAs). A top official of the Gujarat government claimed  that  the GSPC  has “started production” and has been “repaying its debt”. A high level delegation from Gujarat led by its minister  of revenue Bhupendrasinh Chudasama and minister of state for industries Rohit Patel was in the city for a roadshow to woo industrialists for the Vibrant Gujarat Global Summit event in January 2017.

Chief minister Mamata Banerjee while slamming  Prime Minister Narendra Modi on demonetisation on Thursday had cited  a CAG report and claimed  that  GSPC had taken loans from several banks to the extent  Rs 19,576 crore but the project did not take off. On being questioned about Ms Banerjee’s allegation, the official said,who had earlier worked in the company said,  “As of my knowledge, the company has started production and has been repaying its debt to the consortium of banks which funded the project for the last three years.  The pipeline has been laid. The company had been paying Rs 1,800 crore every year for the last three years. Work  on seven of the 25 wells had been completed.” He added that the CAG  report had  questioned delays in the project. and did not  say anything about non performing asset.

Ms Banerjee had referred to alleged mismanagement in the GSPCL’s KG basin gas project in 2005 when Narendra Modi was the chief minister of Gujarat.