The annual report of the union shipping ministry shows that some organisations in the sector incurred an expenditure of about Rs 490 crore, which was avoidable.
According to a government audit, pointed out in the report, Dredging Corporation of India (DCI) incurred Rs 165 crore cost owing to lack of professional handling of fuel consumption.
The report points out that DCI did not focus on optimization of expenditure on fuel and lubricants, did not fix norms for fuel consumptions rate on a scientific assessment.
It is said to have followed inappropriate purchase procedure and failed to determine competitive prices for fuel and had inadequate internal control procedures.
During 2007-11, DCI lost an opportunity to save Rs 164.63 crore on fuel consumption because of the above deficiencies.
The audit also found that Shipping Corporation of India (SCI) bore unfruitful expenditures of Rs 183 crore and some major ports accounted for avoidable expenditure to the tune of Rs 141 crore.
The SCI has reportedly failed to conduct detailed study before entering into a Joint Venture (JV) 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, the report shows.
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