House Panel Reports Point At Discrepancies In Ports

A memorandum of the Rajya Sabha secretariat and reports from CAG and a Parliamentary panel have highlighted a port sector scam, estimated at Rs 1.5 lakh crore. Major discrepancies found in the sector were appointing cargo handling agents and disposing waste oil from the ports.



While The Financial Express has already reported (on August 12) the CAG's findings of appointing unauthorised agents for onshore operation, it has found that the Parliamentary standing committee on transport, tourism and culture identified major financial leakages in waste oil disposal though the government is yet to take any action on it.



The Rajya Sabha secretariat, on the basis of the Parliamentary panel report, had issued a memorandum on July 12 seeking explanation from the shipping ministry and port authorities about waste oil disposal.



The secretariat in its memorandum said, "Around 18,000 kilo litres of waste oil is generated in Kolkata and Haldia ports annually. This waste oil is disposed off through private parties on nomination basis at throw away prices whereas this is reaching the market at a higher price later on. Similar situation prevails in all other major ports as well."



The memorandum further says, "Proper tendering for the purpose is not being done, which is mandatory under CVC guidelines. The CVC guidelines have been violated in other major ports also."



All India Major Ports and Dock Officer's Association, (AIMPDOA) which has helped the panel in identifying the leakages estimated that the country has lost the opportunity of generating more than Rs 10,500 crore revenue over a period of 35 years by not conforming with the provisions of the CVC.



The CAG has already reported violation of norms in allowing unauthorised agents to carry out onshore operation without sharing royalty with the ports. AIMPDOA says that with each agent carrying away Rs 450-500 crore annually from the ports. The loss to the exchequer adds up to Rs 1.4 lakh crore over a period of 35 years only on account of unauthorised cargo handling.

Source:- indianexpress.com