BJP activists protest in Bhubaneswar on Saturday. Picture by Ashwinee Pati

Bhubaneswar, Sept. 15: The Odisha government is likely to face rough weather following an inquiry by the CBI into allegations of a company in the state having handed over a coal block allotted to it to another company.

The state government had recommended a coal block for Hyderabad-based Navabharat Power for its proposed power plant in Angul district.

Later, the company was acquired by the Essar group and the latter took control over the coal block.

The CBI has lodged an FIR against Navabharat Power that had inked an MoU with the Odisha government to set up a power plant at Meramundali in Angul district in 2006.

However, Essar Power Limited has clarified on its website that the acquisition of Navabharat Power was in line with the company’s publicly-stated strategy of growing its power-generation business through both organic and inorganic means and was fully disclosed to all relevant statutory authorities.