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Lack of professional approach, delays, avoidable expenditures and losses cost Shipping Corporation, Dredging Corporation and two major ports about Rs 490 crore, according to the annual report of Shipping Ministry for 2012-13.
Lack of professional handling of fuel consumption issues cost Rs 165 crore to state-run Dredging Corporation (DCI), another PSU Shipping Corporation (SCI) bore unfruitful expenditures of Rs 183 crore and some major ports accounted for avoidable expenditure to the tune of Rs 141 crore, audit observations in the report said.
Dredging Corporation did not focus on optimisation of expenditure on fuel and lubricants, did not fix norms for fuel consumptions rate on a scientific assessment, followed inappropriate purchase procedure, did not determine competitive prices for fuel and had inadequate internal control procedures, the audit observations mentioned.
“These deficiencies indicate a lack of professional handling of fuel consumption issues. As a result of the above deficiencies, the company lost an opportunity to save Rs 164.63 crore on fuel consumption during 2007-11. This amount is equal to 49 percent of to profit Before Tax (Rs 335.19) reported by the company during these years,” the report said.
It added a professional approach could bring tremendous benefits to DCI and improve its bottom line substantially.
About the country’s largest state-run Shipping company it said: “The SCI did not conduct detailed study before entering into a joint venture for chemical tanker operations. The initially approved investment of Rs 45 crore in the year 2006 increased to Rs 141.80 crore in the year 2011 with no returns.”
Besides, it said the company also suffered a loss of Rs 32.56 crore towards operations of vessels while inordinate delay delay in finalisation of contract for supply of stores items resulted in avoidable expenditure of Rs 7.62 crore.
About ports, the audit observations say while Mormugao Port Trust, Goa, suffered an estimated loss of Rs 60 crore revenue due to delay in completion of capital dredging, Chennai Port Trust made unfruitful expenditure of Rs 43 crore by non-testing of the bubble structure for containing air pollution.
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