Vizhinjam project favours Adani, says CAG report.

Thiruvananthapuram: Multi-port operator Adani Ports will reap undue benefits from the Vizhinjam port for 40 years though the government will be funding 67% of the project, the Comptroller and Auditor General (CAG) of India has found.

The CAG report, tabled in the assembly recently, said a scrutiny of the concession agreement revealed conditions that were not favourable to the state government.

Soon after the CAG report came out, CPM state secretary Kodiyeri Balakrishnan and KPCC former president V M Sudheeran demanded a probe into the agreement, signed during the tenure of the previous UDF government.

The standard concession period for public-private partnership projects has been 30 years. The agreement, however, allowed 10 years extra concession period, helping the concessionaire to collect an additional revenue of Rs 29,127 crore, said Amar Patnaik, accountant general, while detailing the findings of the report.

'In spite of the 67% investment by the state government, the net present value (NPV) of its investment in the project is (-) Rs 3,866.33 crore. The concessionaire with 33% investment is getting an NPV of Rs 607.19 crore,'' Patnaik said.

The report observed that the technical and financial estimates prepared by external consultants were not diligently scrutinised.
The CAG recommended a scrutiny of the project by 'qualified and responsible government officials' before giving further approvals.

The CAG's report on public sector undertakings also rapped Horticorp for procuring vegetables from middlemen instead of farmers. The report pointed out that vegetables procured by Horticorp contained residues higher than permissible limits.

Horticorp made 75.47% of purchases valuing Rs 53.76 crore from traders and middlemen during 2014-15 and 2015-16.

During 2011-12 to 2015-16, Horticorp procured vegetables and fruits ranging between 4,000 metric tonnes and 18,000 metric tonnes from the state, merely around 2% of the total vegetables produced in Kerala.

The CAG report also flayed the tourism department for empanelling agencies for promotion and marketing of tourism, by flouting all norms.

The report said the tourism department should avoid post-tender amendments by incorporating pre-qualification criteria and evaluation criteria.

TOI