The Chhattisgarh Mineral Development Corporation ltd (CMDC) did not carry out mining and marketing of minerals on its own and awarded the same to private contractors, the Comptroller and Auditor General of India (CAG) has observed in its report on public sector undertakings for the year ended March 31, 2016.
The CAG observed that during 2011-12 to 2015-16 , the company carried out mining and marketing of Bauxite ore only through private contractors and trading (purchase and sale) of tin-ore.
The report further observed that the pre-mining activities viz preparing feasibility reports, prospecting and obtaining statutory clearances etc. were also carried out through outsourced agencies without any cost-benefit analysis of outsourcing of these activities.
The company failed to develop the coal blocks and commence mining through the milestones since commencement of production were missed by nearly two years to over seven years and substantial expenditure was incurred by the company on these blocks, it observed.
The failure was mainly due to inordinate delays in preparation of geological reports, delays in applying for various requirements such as mining lease, forest clearance, environment clearance and land acquisition etc.
The directive of the Supreme Court (September 2014) to cancel five coal blocks to the company rendered the expenditure of `339.24 crore incurred by the company for infructuous pre mining works, it observed.
