The CAG said it had referred the issue to Union Home Ministry in August, 2016, but is yet to receive a reply as of January, 2017.
According to the report for the year ending March 2016, the PMB had entered into an agreement with a contractor Corporated Shipyard Pvt Ltd to acquire two mooring-cum-mini tugs for Rs 2.45 crore in October, 2009.
As per the agreement, the tugs - small powerful boats which are used for towing or pushing ships, barges, etc - were to be delivered by December, 2010.
In the report, the auditor also noted that the PMB made "premature" payments of Rs 1.59 crore (65 per cent of the total value) to the contractor concerned till March, 2011.
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"Throughout the period PMB failed to monitor the project and held its first review meeting only in March, 2015, more than four years after the scheduled date of delivery," the CAG said.
It observed that instead of penalising the contractor by enforcing liquidated damages, the PMB allowed the contractor to revise the date of delivering tugs to first July, 2015 and later to August, 2015, which it said was also not achieved.
According to the auditor, the deficiencies in respect of the tugs included lesser trial speed and bollard pull, non-supply of spare parts, non-registration of both the tugs under the Andaman and Nicobar Islands Port Rules, among others.
The bollard pull is the maximum pulling capacity that a tug can exert.