Production targets over-ambitious iron-ore set by NMDC

  • Wednesday, July 10, 2019

  • Keywords:Iron Ore
[Fellow] targets over-ambitious iron-ore set by NMDC


The Comptroller and Auditor General (CAG) of India has announced that NMDC Ltd had fixed over-aspiring focuses for creation of iron ore. In its report on the operational presentation of NMDC Ltd, CAG said the 75 million tons for every annum (mtpa) generation focus by 2018-2019 and 100 mtpa by 2021-2022 were fixed without giving due cognisance to the unfavorable discoveries of the advisor designated for the reason. These objectives were additionally set without mulling over the declining pattern in local and worldwide costs of iron ore, the CAG said. These objectives were accordingly decreased to 50 mtpa by 2018-2019 and 67 mtpa by 2021-2022. In spite of the lower focuses on, "The empowering activity of setting up different undertakings and framework offices to accomplish the focused on generation limit were not in a state of harmony with the conceived courses of events," the CAG noted. CAG also red-flagged delays in natural clearances and rapped the organization for undertaking unsafe ventures. "The organization needs to factor in market patterns while fixing focuses in its occasional plans, with the goal that the set targets are practical and attainable… The organization needs to direct legitimate due determination and pay due cognisance to hazard factors before leaving on national and global speculation adventures," the CAG prescribed. "The organization needs to fortify its task execution component/procedure to maintain a strategic distance from postponements in usage of activities/development works and to evade time and cost overwhelms so the imagined advantages are understood… The Board of the Company may reinforce its observing system so as to guarantee auspicious culmination of ventures," CAG included.

  • [Editor:janita]

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