SBI should declare GSPC as bankrupt: Congress

Jairam Ramesh

New Delhi, Aug 27: Referring to a Reserve Bank of India (RBI) circular, the Congress on Monday said that the State Bank of India (SBI) should declare Gujarat State Petroleum Corporation (GSPC) as bankrupt by the evening. 

Addressing a press conference, senior Congress leader Jairam Ramesh stated “this year On February 12, the central bank had issued a notification citing any company that owes more than Rs 20,000 crore to banks, should be declared bankrupt within a span of 180 days.

“GSPC’s highest debt is from SBI. According to RBI’s notification, SBI should declare GSPC as bankrupt by 5 p.m. today (Monday),” he said.

When Prime Minister Narendra Modi was the Gujarat Chief Minister, the GSPC emerged as one of the biggest successful Gujarat Model.

The Congress leader further said, “In 70 years, for the first time the Central government has filed an affidavit in High Court against RBI, with the only intention of saving GSPC”.

Even after the sanction of Rs 20,000 crore to GSPC, no oil or gas has been extracted from GSPC, he added.

“Tuff Drilling one of the subsidiary companies of GSPC, had no experience in oil drilling. It was involved in apparel business. This company is bankrupt now”.


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