The BJD Government led by Naveen Patnaik, which is already under attack from the Opposition over its indiscriminate and irregular recommendations for allocation of coal blocks in favour of private companies, seems to have landed in fresh trouble as the CBI is investigating five coal blocks allocated to three State-run undertakings.
The coal blocks, which are under investigation of the CBI for alleged irregularities, include Utkal-D, Nuagaon Telisahi, Mandakini-B, Manoharpur & Dip Side of Manoharpur and Baitarani West.
The CBI is probing whether rules and procedures were followed in awarding the mine development contracts to the State PSUs and whether the system adopted by the concerned authorities in formation of joint ventures (JVs) was carried out in a transparent manner after conducting due diligence.
The CBI inquiry also covers the files relating to grant of mining leases to be granted by the State Government. The Central Government has, accordingly, requested the State Government to accord the necessary consent to enable the CBI to inquire into the irregularities, as written by State Steel & Mines Secretary G Srinivasan to State Energy Secretary PK Jena and Odisha Mining Corporation (OMC) CMD Saswat Mishra.
The Steel & Mines Department has sought information on three areas: if the Government companies have awarded contracts for development of coalmines; if the Government companies have formed JVs with private companies; and whether due procedure and rules have been followed in the process of awarding contracts and formation of JVs.
While both Utkal-D and Mandakini-B were allocated to the OMC, the Nuagaon Telisahi coal block was allocated jointly to the Odisha Mining Corporation (OMC) and the Andhra Pradesh Mineral Development Corporation ltd. The OPGC was allocated the Manoharpur and Dip Side Manoharpur coal block for pursuing its 1,320-MW expansion project.
The Baitarani West block was allocated jointly to the OHPC along with the Gujarat Power Generation Corporation and the Kerala State Electricity Board.
The Union Coal Ministry has already de-allocated the New Patrapara, Baitarani West, Utkal-D, Mandakini-B and Naini blocks in view of the unsatisfactory progress in their development.