Pyari Mohan Mohapatra

Bhubaneswar, Nov. 7: The Odisha Mining Corporation (OMC) finds itself in a spot with an inter-ministerial group recommending cancellation of a major coal block allotted to it.

Sources said that Utkal-D block in the Bisrampur Coalfields in Talcher, which has a reserve of 80 million tonnes (MT), had become controversial as the OMC, the state’s official mining agency, sought to develop the mine through a joint venture with Sainik Mining and Allied Services Limited, a Delhi-based company that was given majority stakes in the venture.

However, the block, which was allotted to the OMC on December 19, 2003, to set up a power station, could not yet be developed as the project in which Sainik Mining held 74 per cent share failed to make any headway. The joint venture signed on December 29, 2003, was criticised by the Opposition parties on the ground that OMC was playing second fiddle to a private company. The inter-ministerial group cancelled the allotment to the OMC yesterday.

Sources said that cancellation of the coal block came even as speculation was rife about the possibility of a CBI inquiry being instituted into the controversial joint venture between the OMC and Sainik Mining.

The Public Accounts Committee had also slammed the deal which the state government finally cancelled last month fearing de-allocation. But the inevitable has now happened.

Steel and mines minister Rajanikant Singh said: “We will review the situation in the light of the latest developments. I have asked the chairman-cum-managing director of the OMC to get all the documents ready for the review meeting which will be called shortly.”

However, OMC chairman-cum-managing director Saswat Mishra said he was yet to be officially communicated about the de-allocation decision. “We have not received any official communication in this regard so far,” he said.

The Centre has already cancelled allotment of coal blocks made to Bhushan Steel, one of the many steel makers with stakes in Odisha. On the other hand, the CBI has filed a case against Navabharat Power Limited for selling its coal blocks to another company. The state government has also been drawing flak for recommending allotment of coal blocks in favour of some private companies.

The inter-ministerial group’s move has added to the embarrassment of Naveen Patnaik government at a time when major mines operating in the state have come under the scanner of Justice M.B. Shah Commission that is inquiring into cases of illegal mining in different states of the country.

The commission’s six-member team, currently on a visit to the state, today interacted with the state vigilance officials who had been asked to probe the multi-crore mining scam in the state soon after it surfaced in 2009.

The state unit of the BJP today reiterated its demand for a CBI inquiry into the mining scam pointing an accusing finger at suspended BJD leader and Rajya Sabha member Pyari Mohan Mohapatra.

“The scam happened with the blessings of Mohapatra,” said state BJP spokesperson Ashok Sahu. Mohapatra, however, dismissed the charges as baseless.