Kolkata, Dec 9 (IANS): Dismissing West Bengal Chief Minister Mamata Banerjee's allegation that Gujarat State Petroleum Corporation Ltd (GSPCL) mismanaged its exploration and development related activities in KG Basin, a Gujarat government official on Friday said the company has "started production" and has been "repaying its debt".

"As of my knowledge, the company has started production and has been repaying its debt to the consortium of banks which funded the project. The Comptroller and Auditor General of India (CAG) in its report questioned delays in the project. It did not say about non performing asset," said the Gujarat government official on the sidelines of a roadshow for Vibrant Gujarat Global Summit here.

Banerjee had referred to alleged mismanagement in the GSPCL's KG basin gas project in 2005 when Narendra Modi was the Chief Minister of the western state.

Citing a CAG report, Banerjee had said around Rs 19,576 crore was borrowed from several banks but the project did not take off.

The official, who worked in the company earlier, said, "The company plans to dig 25 wells. Seven wells have already been dug. It has been servicing its debt."