The coal scam is set to get murkier with the Odisha Government passing the buck to the Centre in the matter of coal block allocations. In an affidavit filed in the Supreme Court, the State Government said that the choice of lessee was always that of the Centre and the State Government had no option but to process the application in favour of that individual/company.
The affidavit assumes significance in the wake of PMO’s latest clarification that Hindalco was allotted Talabira coal block in Odisha on the “strong” recommendation of the Naveen Patnaik Government.
The State Government lashed out against the Centre for throwing all norms to wind in the allocation of coal blocks to private parties and gave instances where Centre allocated coal blocks either without seeking any recommendation from the State or by overlooking the recommendation.
Under Section 5(1) of the Mines and Minerals (Development and Regulation) Act 1957, which vested final authority to the Centre for grant of approval of mining lease, the State can recommend prospective bidders for the concerned block and even participate in the Screening Committee meeting. But the affidavit said that from the circumstances that emerged from the Screening Committee proceedings, the Centre exercised “pervasive control” in matter of allocation of coal block and consequently grant of mining lease.
Citing one example, the State referred to the allocation made with respect to Patrapara coal block. The Odisha Government had recommended the said block in favour of its PSU — the Odisha Mining Corporation (OMC). Overlooking this request, the block was allotted to private parties namely, Bhushan Steels and Strips ltd, Adhunik Metaliks ltd, Deepak Steel and Power ltd, Adhunik Corp ltd, Orissa Sponge Iron ltd, SMC Power Generation ltd, Sree Metaliks ltd and Visa Steel ltd.
“Views offered by the State Government were not determinative in the final decision-making process and the eventual decision was entirely at the discretion of the Central Government,” the affidavit said.
Interestingly, Manmohan Singh’s October 19 Press release put the onus on the State for deciding on October 1, 2005 to allot 15 per cent of the block to Hindalco. It said, “Under the federal framework of sharing mining rights as provided under the MMDR Act, both the Central and State governments need to concur before an company can be granted a mining lease. Accordingly, the strong recommendation of the Government of Odisha (for Hindalco) is important and has to be given due consideration while taking a decision in the matter.”
Quite contrary to this stand adopted by PM, the Chief Minister of Odisha wrote to him on March 6, 2006 objecting to the process of allocation being carried out without seeking any formal recommendation from the State.
Again on October 1, 2008 he highlighted the disproportionate allocations to private parties over state PSU despite Odisha being the state with largest coal reserve. Upset over “unplanned allocation”Odisha CM had in February 2011 even sought review of all allocations made in the State, a request which went unheeded till date.