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PMO defends Odisha coal block allocation, says it was ‘on merit’ New Delhi, October 19 The PMO emphasised Dr Singh was the "competent authority" to have cleared the proposal moved by the Coal Ministry in 2005. "The Prime Minister is satisfied that the final decision taken in this regard was entirely appropriate and is based on the merits of the case placed before him," the PMO said. The PMO underscored that the allocation to a joint venture that included Hindalco was not at the expense of public sector undertaking Neyveli Lignite Corporation (NLC), asserting that this allocation was under investigation by the CBI that along with other cases was being monitored by the Supreme Court. "However, the Talabira coal block allocation is a case where the final decision differed from the earlier recommendation of the Screening Committee, and this was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal," the PMO said. Reiterating the Prime Minister's earlier statement that the government had nothing to hide, the PMI emphasised that no impediment was being placed on the CBI to continue the investigation and seek fresh information that may have a bearing on the case. "The investigation on this and other matters must take their normal course under the law." A controversy arose on the allocation of Talabira coal block in Odisha after the CBI filed a case against Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P C Parakh. Parakh has said if he was accused of conspiracy, then the Prime Minister also should be made an accused as he had approved the revised decision. Providing a sequence of events, the PMO said Singh had received a letter dated May 7, 2005 from Kumar Mangalam Birla requesting allocation of Talabira-II coal blocks in Odisha to Hindalco for its 650MW captive power plant in its integrated aluminum project in Sambalpur and for a 100MW captive plant for the expansion of its Hirakud aluminum plant in Odisha. The Prime Minister noted on the letter: "Please get a report from Coal Ministry," it said. The PMO forwarded the letter to the Coal Ministry on May 25, 2005 requesting it to look into the matter and send a report. Birla submitted another letter to the Prime Minister
on June 17, 2005 repeating the request. This letter was linked to the earlier reference and sent to the Coal Ministry with a request to send a report, it said. In August 2005, the Coal Ministry sent its file to the Prime Minister, mentioning that the Screening Committee had considered three major contenders for allocation of Talabira-II and decided to allocate this block to
NLC. The decision, in which Hindalco was not given the block, was based on three reasons, the PMO said. One reason was that "adequate coal linkages had been provided to Hindalco from Mahanadi Coalfields Ltd long time back and Hindalco had not used the coal". Another reason given was that "Talabira-II and III blocks needed to be developed together to extract an additional 30 million tonnes of coal which would have gone waste otherwise at the boundaries of each block." The third reason was that NLC and Mahanadi Coalfields Ltd can develop the two blocks together as one large mine through a Joint Venture (JV).
Birla, the PMO said, requested for allocation of Talabira-II to Hindalco stating it was the first applicant for it as long back as 1996 and that "the coal linkage granted earlier was not used as a bauxite mine lease relating to the aluminum plant had not materalised". The controversy
Opposition charge
PMO's defence
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