The Comptroller and Auditor General of India has faulted the Andhra Pradesh Government for its inept handling of port contracts awarded under the public private partnership mode.
Multiplicity of non-major ports along the coastline, along with liberal grant of exclusive rights over large lengths of coast (well beyond port limits) has virtually rendered the majority of the State’s coastline privatised, it said.
Notwithstanding the provisions of the concession agreements, the State Government irregularly permitted or allowed change in the shareholding pattern of the development consortium and/or port operator in Krishnapatnam, Gangavaram and Machilipatnam ports.
These changes vitiate the sanctity of the bidding and contracting process, it observed.
The performance audit was tabled in the State Legislative Assembly on the last day of the Budget session on Friday.
In the report it mentioned, “A key aspect of the development of ports on PPP mode has been the allotment of large amounts of land to these ports, also facilitating mortgaging of such lands by the private developers to banks and other lending institutions for obtaining huge loans for project development, leaving little risk or exposure on the part of the private parties.”
With a coastline of 975 km, the second longest in the country, AP has 14 notified non-major and minor ports.