The report by the Comptroller and Auditor General on economic sector, for the year ending March 2014, was presented in the Assembly today.
"The department should have examined the feasibility of the project implementation by involving stakeholders like fishermen, whose livelihood was likely to be affected by the above project," the report said.
"The failure of the Department to identify and address the concerns of the local fishermen, who feared loss of livelihood if the project was implemented, culminated into non-implementation of it," it said.
The Congress-led UDF government initiated the project in June 2012. "Even after two years of release of 23.29 crore, the flagship project of the Department (Tourism), had not been made operational," the report said.
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The government had planned to launch an amphibian aircraft in five locations as per the proposal drawn up by a private company.
Significantly, the state cabinet last week had decided to relaunch the project, which was envisaged to ease the pressure on road and rail modes of transport to tourist destinations.
He said though there were protests in some places, there were also places where people supported the initiative. The government, in its initial phase, would launch the project in places where there is no protests, Chandy said.