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The state government has sought to steer clear of the controversy on alleged irregularities in coal blocks amid an ongoing probe by the Central Bureau of Investigation (CBI).
Five coal blocks — Utkal-D, Nuagaon Telisahi, Mandakini-B, Manoharpur & dip side of Manoharpur and Baitarani West — won by the state run PSUs either exclusively or jointly with other state PSUs are under CBI scanner.
“The state PSUs have not entered into joint ventures (JV) with any private company. The JV formed by Odisha Mining Corporation (OMC) with Sainik Mining has been scrapped. Besides, the selection of mine developer cum operator will be made through the international competitive bidding route. There is no irregularity committed by our PSUs post allocation of coal blocks,” said a senior government official.
In its preliminary enquiry, the CBI is investigating if the coal block allocatees followed the rules and procedure for awarding the mine development contracts and whether the system adopted by the concerned authorities in formation of JVs was carried out in a transparent manner or not.
The CBI enquiry also covers the files relating to grant of mining leases which were to be granted by the Odisha government.
Both — Utkal-D and Mandakini-B — were allocated to state run miner OMC. The Nuagaon Telisahi coal block was allocated jointly to OMC and Andhra Pradesh Mineral Development Corporation Ltd. Another state owned firm Odisha Power Generation Corporation (OPGC) won the Manoharpur and dip side Manoharpur coal blocks for its 1,320 Mw expansion project. The Baitarani West block was allotted jointly to Odisha Hydro Power Corporation (OHPC) along with Gujarat Power Generation Corporation and Kerala State Electricity Board.
The Coal ministry had de-allocated New Patrapara, Baitarani West, Utkal-D, Mandakini-B and Naini blocks in view of their unsatisfactory performance.
Apart from blocks allocated to state PSUs, the CBI is probing into 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 coal blocks for its 2,250 Mw power plant proposed at Meramundali near Angul. Nava Bharat Power reportedly made a profit of Rs 200 crore from the deal. Acting with caution, the state government had stalled the process of land acquisition for the project.
The coal ministry had allotted 32 blocks in Odisha to state PSUs and private entities. Of this, only the Talabira coal block allotted to Hindalco Industries had gone into production.
