The report for the year ended March 31, 2013 was placed on the table of the House today by Chief Minister N Rangasamy.
"Designing of schemes deviating from the norms prescribed by Central Public Health and Environmental Engineering Organisation resulted in avoidable extra expenditure", the CAG said.
Water charges levied were not sufficient to meet the Operation and Maintenance expenses as envisaged in the National Water Policy and there was also huge arrear in collection of water consumption charges, the report said.
It also said that an audit of Public Private partnership of development of Karaikal port revealed that Puducherry government issued Expression of Interest for port development without specifying pre-qualification criteria for selection.
The monitoring system was weak due to failures of the administration in appointing a director to the Board of Directors of the Port, non-engagement of an independent engineer, non-constitution of separate bodies for the monitoring of the project, irregularity in operation of escrow account and non-conducting of annual physical verification.