PPP projs contributed 33% to total capacity of major ports:CAG

Indian ports achieved only 79.80 MTPA capacity addition during 2010-12 as against envisaged 315.23 MTPA, while PPP projects have contributed only 33 per cent to total capacity of major ports up to March 2014, thereby defeating the purpose of PPP model, CAG said.
"The PPP model was to ensure faster augmentation of infrastructure and better service quality for the user. However, out of capacity addition of 315.23 MTPA envisaged by the Maritime Agenda 2010-20, the ports achieved capacity addition of 79.80 MTPA (25.31 per cent) during the period", CAG said in its report which was tabled in Parliament today.
Government had decided to invite private participation through PPP mode for faster augmentation of infrastructure resources in major ports. A total of 91 PPP projects with total capacity addition of 751.71 MTPA were sanctioned by the government up to March 2014, the official auditor said.

The audit report on 'Public Private Partnership Projects in Major Ports' also said that PPP projects could contribute only 33 per cent to the total capacity of major ports as on March 31, 2014.
Thus the purpose of resorting to PPP mode was defeated due to slow progress in implementation of projects, the official auditor said.
Ports did not structure the PPP projects appropriately as a result of which the long-term interests of the ports were not adequately protected, it said.

"We noticed inconsistencies in the bidding process and selection of PPP partners. Significant post bid concessions valuing Rs 40.23 crore had been extended to concessionaires at CoPT (Cochin Port Trust)", it said.

"Commissioning of projects and inflow of revenue to ports were affected due to delay in non-fulfilment of obligations on the part of the ports/ministry in respect of..Obtaining environmental clearance to projects, timely handling over of the project sites," it said.
Non-fulfilment of conditions precedent by the concessionaires was also one of the major reasons for the delay in the commissioning of projects, it added.
"There was no standardised definition of the term 'gross revenue' across the ports prior to 2008. Deficiencies in revenue sharing arrangements, variances in the provision for appointment of auditors and lack of exercise of control by means of independent verification of operational data by ports were noticed", it said.