OMC posts Rs 92.7 crore loss in mining and sales of Iron ore fines

Bhubaneswar: The Comptroller and Auditor General of India (CAG)
has rapped Odisha government owned Odisha Mining Corporation (OMC) for
irregularities in sale of iron ore fines, chrome ore concentrates and in the JV
with Sainik Mining and Allied Services.

As per the CAG report, OMC has posted loss of Rs 36.25 crore for
selling iron ore fines without doing its gradation.

The government auditor has
found that OMC has sold 64 grade iron ore fines mixed with 62 grade fines at
the price of the 62 grade.

In the year 2011-12 OMC has sold total 4 lakh 93
thousand tons of ‘62 grade’ iron ore fines at a price which was Rs 36.25
crore below the IBM price.

OMC has also faced a loss of Rs 34.45 crore for not following
the statutory provisions at the Kurmitar and Gandhamardan mines.

In has been
found that several lakh tons of iron ore fines valued at Rs 34.45 crore has
drained through rivers and rivulets.

Similarly, OMC has posted a loss of Rs 22 crore in the mining and
sale of Chrome ore during the year 2011-12.

This includes loss of Rs 14.75
crore in the sale of chrome ore concentrate in the domestic market, loss of
Rs.4.87 crore for fund mismanagement, loss of Rs.1.11 crore due to frequent
cancellation of the auction process and a loss of Rs 1.24 crore for  faulty decisions in beneficiation, sale and
transportation.

On the other hand the CAG has scathingly
criticized the Odisha government for showing undue favour to Delhi-based
private company, Sainik Mines and Allied Services Ltd.(SMASL), in firming up a
joint venture with  the state-owned Odisha Mining Corporation (OMC)
for exploitation of coal.