Flaws in PSU expansion scheme: CBI probe

THIRUVANANTHAPURAM: Kerala's LDF Government today decided to seek a CBI probe into alleged irregularities in the Rs 760-crore expansion and upgradation project for the state PSU Kerala Minerals and Metals Ltd planned by the previous Congress-led UDF Government.

Talking to reporters after a cabinet meeting, Chief Minister V S Achuthanandan said the agreements signed by the then government as part of the scheme would be cancelled.

The Cabinet, however, decided to give its approval for the Rs 60-core upgradation project submitted by the management of KMML,a state-run company engaged in extraction and value-addition of rare metals and minerals found in abundance in the Neendakara coast of Kollam district.

The Government was seeking a CBI probe as the project envisaged by the previous government involved certain foreign collaborations, he said.