Karnataka - Gulbarga   

CAG criticises functioning of Mysore Minerals Ltd.

Special Correspondent

GULBARGA: The working of the State-owned Mysore Minerals Ltd. (MML) has come under the scanner of the Comptroller and Auditor General of India (CAG), who has pointed out several discrepancies in its latest report submitted to the Government.

The report, which went in detail about MML's functioning, said that as on March 2004, the accumulated loss was Rs. 36.98 crores, eroding the paid capital of Rs. 3 crores. The trade dues and other liabilities of MML had increased from Rs. 26.22 crores in 1999-2000 to Rs. 100.96 crore in 2003-04, mainly due to interest accrued on the borrowing.

The report pointed out that MML had not done any exploration work (drilling) during 1999-2004 and the heavy backlog in drilling has affected the prospecting of mineral deposits and working of mineable areas. It did not accept the reply given by the Government that backlog in drilling was owing to financial constraints and had not affected the working of mineable areas since the earlier exploration will last till the end of 2005.

The report, pointing out a discrepancy in the award of contract of Mallainapura and Yadapura quarries to a Bangalore-based granite company, said MML had entered into an agreement with Metro Granite for removal of granite blocks from the two quarries. As per the agreement, the work of the production of granite should have begun in June 2002, but the contractor did not commence the operation till May 2003. The MML, without claiming the penalty of Rs. 60.18 lakhs for the shortfall in production, cancelled the agreement in May 2003 and entered into fresh agreement in October 2003 with the same party on the same terms and conditions.

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