Comments
In what could have been a tourism push, a proposed hovercraft service between two of the tourist destinations in Saurashtra region, resulted into an embarrassment for Gujarat Maritime Board (GMB), a nodal agency for maritime activities in state.
The central auditor, Comptroller and Auditor General of India (CAG) in its latest report for 2012-13, tabled in the state assembly on Friday, reprimanded GMB for adopting inaction towards ensuring timely delivery of the hovercraft for operating passenger services between Madhavpur and Porbandar.
The order for the hovercraft, costing Rs 6.30 crore was given to a Mumbai-based firm SHM Shipcare Pvt Ltd in November 2008 and the scheduled delivery of the craft was July 2009. But till today, the delivery of the hovercraft remains awaited.
However, giving a latest update on the matter, a GMB source informed, “The delivery of the hovercraft will be made in a month’s time.”
Interestingly, the passenger service to ferry people between Madhavpur and Porbandar was aimed at promoting tourism. Madhavpur is a place, where, according to folklore, lord Krishna married Rukmini after her abduction. A temple of Lord Madhavrai is made in the memory of this event and every year a fair is held in the village.
The supplier, SHM was given frequent extension. GMB also released payments of Rs 3.8 crore in instalments after retaining Rs 52 lakh as security deposit, liquidated damages and retention money up to July 2012.
The CAG observed that non-delivery of hovercraft for a period of 57 months since the placement of order led to blocking the fund of Rs 3.89 crore and consequential interest loss of Rs 1.14 crore at the rate of 14 per cent during June 2010 to July 2013. The amount could further increase as the delivery has not been made so far.
Interestingly, in December 2013, the government had stated that GMB, with the apprehension of the work getting completed, had not terminated the agreement and that the hovercraft was expected to be delivered soon.
The CAG found deficiencies in the internal control and monitoring system and recommended a revamp of the same. Also, it called for adequate planning to keep GMB’s profitability in port traffic operation.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.