According to a report by the Comptroller & Auditor General (CAG), the Odisha government received less performance guarantee from minor port developers than that prescribed by the model concession agreement.
For example, the developer of Astaranga port agreed to pay only 1 per cent performance guarantee as against the required 5 per cent.
According to a clause in the model concession agreement, during the construction phase, performance guarantee equivalent to 5 per cent of the estimated project cost must be given by the concessionaire to the concession authority.
The concession agreements of Astaranga, Dhamra and Subarnarekha also provided performance guarantees of 1 per cent of the estimated project cost during the construction phase.
The state government is said to have received 1.65 per cent of the estimated project cost of Rs 1,213 crore for the Gopalpur port project from its concessionaire.
The two ports -Dhamra and Gopalpur -paid only Rs 44.64 crore to the state government against Rs 133.09 crore due as performance guarantees (according to the concession agreements of four ports) as of September 2012.
According to the model concession agreement, Rs 626.08 crore was payable, while according to the concession agreement signed with the minor port developers, the amount payable was only Rs 133.09 crore.
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