The Parliament’s public accounts committee (PAC) scheduled to visit Odisha from November 2 to investigate state government’s role in recommending coal blocks, will hold talks with the top brass of Mahanadi Coalfields Ltd (MCL), chiefly on areas like production and the PSU’s supply commitments to end use industries.
“The panel will check the status of all coal blocks held by MCL, our supply commitments to end-use industries and expansion plans lined up for the future,” said a top MCL official. A 20-member panel of the PAC led by seasoned BJP leader Murli Manohar Joshi will also hold talks with the Odisha chief secretary B K Patnaik and other top state officials on November 3.
Ahead of the visit by PAC, an audit team from the the office of the Accountant General (Odisha) has started process of verification of records in respect of recommendations made by the state government for coal blocks.
The team led by audit officer P K Hazary is taking up scrutiny of records relevant to coal blocks that are expected to be completed on Wednesday.
The PAC will examine the procedure followed by the state government in recommending coal blocks for private as well as PSU firms.
The panel will take up scrutiny on the basis of the findings of the Comptroller & Auditor General of India (CAG) on coal block allocations made between 2004 and 2009. It will also take stock of the extent of water pollution in rivers in Odisha.
After CAG pointed out glaring irregularities in award of coal blocks, an inter-ministerial group of ministers of the Centre has recommended de-allocation of the New Patrapada coal block allocated in January 2006 jointly to Bhusan Steel, Adhunik Metaliks, Deepak Steel and Odisha Sponge Iron. The IMG has recommended bank guarantee encashment in case of Radhikapur (east) coal block allocated to Tata Sponge Iron, Scaw Industries and SPS Sponge Ltd in July 2006.
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Moreover, the sale of Rampia and dip side Rampia coal block by Navabharat Power to Essar Power had come under the scanner. Chief minister Naveen Patnaik had also courted controversy for recommending coal blocks in favour of Jindal Steel & Power Ltd (JSPL).
The recommendation for coal blocks were made by Patnaik even before the signing of memorandum of understanding (MoU) with the company. It may be noted that as many as 22 coal blocks were allocated to private firms and state controlled entities in Odisha between 2004 and 2009, including two blocks for implementing coal-to-liquid projects.