NMDC sets over-ambitious Iron-Ore production targets: CAG
MUMBAI (Scrap Register): Indian state-controlled mineral producer, NMDC Ltd had fixed over-ambitious targets for production of iron ore, the Comptroller and Auditor General (CAG) of India said in its report on the operational performance of NMDC Ltd.
The 75 million tonnes per annum (mtpa) production target by 2018-2019 and 100 mtpa by 2021-2022 were fixed without giving due cognisance to the adverse findings of the consultant appointed for the purpose, the report said.
These targets were also set without taking into consideration the declining trend in domestic and international prices of iron ore, the CAG said. These targets were subsequently reduced to 50 mtpa by 2018-2019 and 67 mtpa by 2021-2022.
Despite the lower targets, “The enabling action of setting up various projects and infrastructure facilities to achieve the targeted production capacity were not in sync with the envisaged timelines,” the CAG noted.