Gujarat State-owned companies doing well

Ahmedabad:  Gujarat government’s initiatives to turn around the State Government-owned companies has yielded results in 2005-06 with five such companies earning substantial profits.

The erstwhile Gujarat Electricity Board (GEB), now Gujarat Urja Vikas Nigam, recorded a profit of Rs 200 crore and became the first company to earn profits after being converted into a corporation.

The Government has claimed that it is for the first time that Gujarat Urja Vikas Nigam has earned profits. The achievement was due to reforms in work culture, reduction in power theft, control over transmision and sharp cut in distribution losses, the Government has said. In 2000-01, the GEB had recorded a whopping loss of Rs 2,543 crore.

Gujarat State Fertilizers Corporation (GSFC) and Gujarat Alkalies, which were in the red four years ago, have also turned around and their share values touched new levels.

The GSFC has registered profit of Rs 197.97 crore for the financial 2005-06. It had incurred a loss of Rs 40.78-crore in 2001-02. Similarly, Gujarat Alkalies also recorded a profit of Rs 293.80-crore against the loss of Rs 66.28-cr in 2001-02.

Share prices of these State-owned companies have risen in the share market. The GSFC share zoomed to Rs 190 in March this year as against Rs 15.50 in March last year. The Company has declared a dividend of 45 per cent for 2005-06.

Gujarat Alkalies share rose to Rs 170 in March this year as against Rs 11.88 in 2004. It has recommended a 20 per cent dividend for 2005-06.

Gujarat Industrial Power Company (GIPC) and Gujarat Narmada Valley Fertilizers Company (GNFC) have shown sustained profits. The GIPC, which had posted a profit of Rs 24.90-cr in 2001-02, recorded a profit of Rs 114.81-cr (after tax) during the financial year ended on March 31, 2006. It has declared a 12.5 per cent dividend for the current year.

GNFC, which had posted a profit of Rs 71.67-crore in 2001-02, recorded a profit to Rs 294.72-cr in 2005-06 and has declared a 42.5 per cent dividend.