Bhubaneswar, Sept. 22: The state BJP today slammed chief minister Naveen Patnaik Patnaik for recommending coal blocks to companies without signing MoUs with them.

The state government is also feeling heat from the CBI with the central agency examining all coal block allotments.

Coal block allotment was cancelled for Bhushan Steel, while the CBI has filed a case against Navbharat Power Limited for selling its coal blocks to another company.

“To arrange funds for the general election in 2009, the Naveen Patnaik government hurriedly recommended names of companies for coal blocks without even signing MoUs,” said former minister and BJP leader Bijoy Mohapatra, adding that attempts had also been made to hand over coal blocks of the Odisha Mining Corporation to a private company.

“Naveen recommended the names of Tata Steel and Jindal Steel and Power Plant for coal blocks for their coal-to-liquid projects. All norms of the Industrial Policy Resolution were violated,” Mohapatra said.

However, the state government has defended its decision saying that these companies had been recommended keeping the financial viability of both the companies and their investments in Odisha.

Jindal plans to set up 80,000 barrels-a-day liquid-to-coal plant at Angul near its existing power plant. The company’s steel and power plant has already been commissioned at Angul.

Tata Steel has proposed to set up a coal-to-liquid project with a Rs 45,000 crore investment. However, Tata Steel’s Rs 34,500 crore project at Kalinga Nagar steel project is on in full swing. But its power plant is facing protests.

However, steel and mines minister said Rajanikant Singh said: “As both Tata Steel and Jindal are financially viable companies and can invest more than Rs 40,000 crore in their respective projects, the government felt that their names should be recommended. It has done nothing wrong.”