Corruption allegations galore in Neyveli Lignite Corporation
A series of corruption charges are levelled against the big public sector undertaking Neyveli Lignite Corporation India Limited (NLCIL). The major allegations ranging from construction township for Talabira Thermal project in Odisha at an escalated cost without tender, fake documents with Exim Bank for a joint venture in Malaysia and Singapore, sale of pond ash without tender at a cheap rate and kickback allegations in providing funds under Corporate Social Responsibility schemes.
As per the documents submitted in Madras High Court, seeking CBI probe, Talabira township construction project was awarded at an escalated price of Rs547 crore, which was earlier given to BHEL for Rs192 crores. However, BHEL, which got tender for the entire project, relinquished the township construction project. Then NLCIL top management gave the township project without tender to another public sector undertaking HITES at an escalated price of Rs547 crores. The HITES sublet the contract to a Hyderabad-based company KPC Projects Limited in mid-2025.
The documents also show that 600 houses to be built is reduced to 300 and size of hospital, mini stadium is reduced in the new escalated contract without tender.
Housing provision for CISF battalion is also avoided in the new controversial project, approved by the top NLCIL top management. The petition filed by one H Manikandan also produced another set of documents showing that a housing colony project given to RSB Projects Private Limited created a loss of Rs38 crore by increasing the tender cost by granting supplementary expenses. Initially tender was awarded for `137 crore and later the request of the private company was allowed to increase the cost. These are clear-cut bribes, said the petition pending before Madras High Court.
Other documents show that pond ash was sold for just one rupee per ton without tender, when the current market rate is `150. The petition seeking CBI says that all the controversial decisions involving huge bribery are taken with the approval of Chairman and Managing Director Prasanna Kumar Mottupalli and other Directors in charge of Power, Finance. NLCIL is a Navratna status PSU under Coal Ministry, having many subsidiaries across the country. The petition also pointed out the role of the vigilance department of NLCIL in hushing up many cases. The documents show that Pond Ash contractor was smuggling tons of Red Sand also and the vigilance department diluted the case by saying “a warning” has to be issued to the contractor instead of registering a criminal case. Per year, six lakh tons of Pond Ash is removed from Neyveli headquarters unit.
Tamil Nadu Police had already registered a case giving forged documents to get EXIM Bank’s Bank guarantee for getting a loan of `1600 crore to start a joint venture with a Malaysia/Singapore-based firm in the graphite project. The petition said that this case must be taken over by CBI as the issue involves many foreign stakeholders. The documents show a series of email trails from the company in the forgery in providing bank guarantee to an international joint venture.
The documents show that clear bribery is happening in allowing grants to NGOs under the Corporate Social Responsibility (CSR) Scheme. NLCIL agreed to grant Rs five crore to Kolkata-based NGO Voice of World, engaged in the empowerment of girl child. But the case got murky after the treasurer of the NGO wrote to NLCIL that they can’t pay back half of the money agreed between the NGO’s promoter and one of the Directors of the PSU. The petitioner argued in the Madras High Court seeking CBI probe, citing a series of documents exposing corruption in Neyveli Lignite Corporation India Limited.
