Business Line cited the Steel Ministry saying that NMDC would review its pricing mechanism. This is the fallout of the CAG report tabled on December 20th Thursday, the public sector iron ore miner has incurred losses of more than INR 1,500 crore during 2007-10 for selling ore at less than market price.
Mr EK Bharat Bhushan additional secretary and financial advisor, Ministry of Steel said that "We have given detailed responses to the CAG. Some of them they have accepted and they have highlighted some. By way of corrective measures the board of NMDC, which ultimately is the authority to fix prices, has brought in an international consultant, which is now looking at the pricing issue."
Mr Bharat Bhushan said that their report is expected in January. The board will give due consideration to the report and adopt a formula after talking to all stakeholders.
He said that the company is duty bound to give consideration to the points raised by the auditor.
Mr CS Verma CMD of NMDC said that ”Policies got changed in line with market conditions. Duties on iron ore were changed. Pricing also kept changing. Output from Karnataka was being sold through e-auctions. In order to streamline all these, we have appointed KPMG to study all these factors. And they will give us a draft report.”