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JSP USP: Both Congress & BJP have backed its claims for mine leases

Congress MP Naveen Jindal?s Jindal Steel & Power may have been given captive coal blocks by the UPA government, but he is equally a favourite of the rival NDA formation, ostensibly indignant over the discretionary allocation of these natural resources.

Congress MP Naveen Jindal?s Jindal Steel & Power (JSPL) may have been given captive coal blocks by the UPA government, but he is equally a favourite of the rival NDA formation, ostensibly indignant over the discretionary allocation of these natural resources.

Orissa chief minister Naveen Patnaik, an NDA ally, in a 2002 letter to the then coal and mines minister Ravi Shankar Prasad recommended allotment of a coal block to JSPL. Patnaik?s gesture followed the cancellation of allotment of the coal block to a power project proposed by the Videocon Group.

This is not a one-off case where BJP/NDA-ruled states have recommended coal blocks in favour of particular companies.

In 2007, Madhya Pradesh chief minister Shivraj Singh Chouhan also openly supported diversion of coal from Reliance Power?s ultra-mega power project (UMPP) to another project in the state, arguing that this would give an industrial boost to the state and create jobs.

Similar recommendations have also been made by Congress functionaries like the one given by tourism minister Subodh Kant Sahai earlier.

On Tuesday, senior BJP leader Sushma Swaraj hit out at the UPA government for showering favours to companies run by Congress MPs including Naveen Jindal. Earlier the party had sought Sahai?s immediate resignation on the grounds that he misused his position to recommend coal blocks in favour of SKS Ispat, where the ministers brother is allegedly one of the directors.

?A party cannot claim its immunity from any act that could be seen as its support for a particular project or company. Recommendations have been sent in the past from top political and government functionaries across all parties and the practice is still followed. The moot point here is whether these recommendations influence government decision-making process where rules are bent to suit a particular interest,? said a government official privy to the development.

The CBI is already examining whether there were any wrongdoings in the captive coal allocation process and checking the antecedents of companies. It has already filed first information reports against five captive coal block allocatee companies, one of which belongs to Congress Rajya Sabha MP Vijay Darda.

In his 2002 letter to Prasad, Patnaik (then part of the NDA government) showered praise on JSPL and its commitment for making huge investment in the state and asked Prasad to intervene. ?…I would request your personal intervention in the matter and to consider allotment of Utkal B-1 coal block in favour of M/s Jindal Steel & Power Ltd. On cancelling the prior allotment to M/s Talcher Mining Pvt Ltd. (for the proposed power project of Videocon Industries),? Patnaik wrote in his letter dated June 22, 2006.

Interestingly, Talcher Mining was allotted the block by the screening committee. But due to an inordinate delay in the power project getting off the ground, the committee set a deadline for the company, suggesting that its non-compliance would lead to cancellation of the coal block.

Later, in 2007, Chouhan made a similar recommendation to Prime Minister Manmohan Singh (also handling coal portfolio then) to allow Reliance Power to use excess coal from captive blocks allocated for its Sasan UMPP for use in another of the company?s power projects at Chitrangi in the state. The proposal was later approved by an empowered group of ministers.

Defending the government against observations of the Comptroller and Auditor General in its report on coal block allocations, finance minister P Chidambaram had earlier cited that letters from several BJP/NDA-ruled states opposing any move to auction coal blocks.

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First published on: 06-09-2012 at 03:59 IST
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