Chief minister Naveen Patnaik arrives in the Assembly at the beginning of its 10th session on Tuesday. Picture by Sanjib Mukherjee

Bhubaneswar, Aug. 28: The Odisha government, in a bid to ward off criticism over the allotment of coal blocks in favour of private companies, today said it had made recommendations to the Centre to ensure proper utilisation of minerals and industrial development of the state.

However, the state government remained silent on why it had opposed a central proposal for competitive bidding for coal blocks.

“The state government had made recommendations as proper utilisation of the mines would create job opportunities for local people and help augment the state’s revenue,” said steel and mines minister Rajanikant Singh in a statement in the Assembly.

Last week, the state government had found itself in a tight spot when Union minister of state for chemicals and fertilisers Srikant Jena had produced documents to show that the chief minister in 2002 had written to the Centre to allot a coal block in the Talcher coal fields in favour of Jindal Steel and Power Ltd.

The state government had also opposed the proposal for competitive bidding in coal block allotment in 2005.

As soon as the documents surfaced today, the Opposition trained its guns on the BJD and even brought an adjournment motion on the irregularities of the alleged corruption in the recommendation of the coal blocks.

However, the adjournment motion on the issue could not be discussed in the House as the BJD raked up the issue of alleged demands of money made by former chief minister and Congress MP from Sundergarh Hemananda Biswal from Mahanadi Coal Field Limited. An employee of the company had alleged that Biswal had been asking for “donations” to run his office. The din over the issue effectively overshadowed all other business of the House.

“The BJD had chalked out a well-planned strategy not to allow the Opposition to discuss the corruption related to the coal block recommendation,” said Opposition leader Bhupinder Singh.

He said the Speaker should have immediately expunged the remarks against Biswal and created a conducive atmosphere for discussing the coal block issue. As the Speaker did not give a ruling and kept the matter pending saying that he would examine it, the Opposition created a ruckus in the Assembly forcing adjournment for the day.

Turning the heat on the Centre on the coal block issue, Singh said the Centre had allocated coal and the state had no constitutional role to play in it. “A screening committee, headed by the coal secretary, used to decide coal distribution,” he said.

On the other hand, Jena said the government had recommended the names of Bhusan Steel, Jindal Steel and Power Limited, SCAW Industries Limited, Rungta Mines, Adhunik Metalliks Limited, Action Ispat and Power Limited, Arati Steel Limited, Aryan Ispat and Power Limited, BRG Iron and Steel Co Private Limited, MSP Mettalicks, Uttam Galva Steels Limited, Tata Group and Sasol Synfuels International, Hindalco Industries Limited and the state government’s public sector Odisha Mining Corporation Limited.

Of these companies, Action Ispat and Power Limited, Arati Steel Limited, Aryan Ispat and Power Limited, BRG Iron and Steel Co Private Limited, MSP Mettalicks, Uttam Galva Steels Limited and Hindalco have not got the coal blocks yet. The state has also recommended the names of Vedanta Alumina and Grasim Industries Limited for coal blocks. The state government has also assured all the 29 companies, who have signed MoUs to set up power plants in Odisha of coal linkages. Of these, only seven have got the coal blocks.