PTI quoted CAG as saying that delays in awarding contracts have nearly trebled iron ore miner NMDC’s cost for developing two deposits to INR 15.06 billion.
NMDC, which has around 16% share of the country’s total iron ore production, had decided to develop Kumaraswamy Deposit in Karnataka and 11B Deposit in Dantewada district of Chhattisgarh in 1997 and 2003, respectively.
The official auditor said that “As a result of delays and also change in the scope of work, the initial project cost of INR 5.92 billion for both the projects has gone up to INR 15.06 billion.”
CAG said that although the Kumaraswamy project was conceived in 1997, the work on the project in Bellary district could only effectively start after February 2009 due to delays in getting statutory clearances.
It said that “The Kumaraswamy project is still in progress due to delays in awarding contracts for development.”
The auditor said it has come across delays in award of contracts and implementation in 11B deposit project in the eastern state. It added, however, that there were other constraints such as difficulties in mobilization of resources and manpower due to Maoist activities.
