The State Government has asked the concerned State public sector undertakings to clarify whether there were any irregularities in formation of joint ventures (JVs) for exploring coal.
The Steel and Mines department has sought information from the Energy department on three subjects: if the Government companies have awarded contracts for development of coalmines; if these companies have formed JVs with private companies; and if due procedure and rules have been followed in the process of awarding contracts and formation of JVs.
“The CBI inquiry also covers the files relating to grant of mining leases which were to be granted by the Odisha Government. The Government of India has accordingly requested the State Government to accord the necessary consent to enable the CBI to inquire into the irregularities,” State Steel and Mines Secretary I Srinivas has written to Energy Secretary PK Jena and Odisha Mining Corporation (OMC) CMD Saswat Mishra.
Sources said the CBI is probing into alleged irregularities in allocation of coal blocks including five owned by State PSUs. The blocks were Utkal-D, Nuagaon Telisahi, Mandakini-B, Manoharpur and Dipside of Manoharpur and Baitarani-West.
While both Utkal-D and Mandakini-B were allocated to the OMC, the Nuagaon Telisahi block was allocated jointly to the OMC and the Andhra Pradesh Mineral Development Corporation.
The Odisha Power Generation Corporation (OPGC) had owned the Manoharpur and dip side Manoharpur block for undertaking its expansion project at Ib Valley. The Baitarani West block was alloted jointly to the Odisha Hydro Power Corporation (OHPC) along with the Gujarat Power Generation Corporation and the Kerala State Electricity Board.
The Union Coal Ministry had, however, de-allocated New Patrapara, Baitarani West, Utkal-D, Mandakini-B and Naini blocks on the ground of unsatisfactory performances.
Besides the coal blocks of State PSUs, the CBI is probing into the alleged profiteering by Nava Bharat Power that had sold 100 per cent of its shares to Essar Power soon after being allocated the Rampia and Rampia dip side blocks for its power plant proposed at Meramundali near Angul.
The Coal ministry had allotted 32 blocks in Odisha to State PSUs and private entities.