Coalgate probe turns to Patnaik, more firms could be booked

Even as India Inc protested the First Information Report of the Central Bureau of Investigation naming Aditya Birla group chairman Kumar Mangalam Birla in the coal blocks allocation scam, there were indications that the CBI could book some more private companies.

[caption id=“attachment_1179275” align=“alignleft” width=“380”]  Odisha CM Naveen Patnaik. PTI[/caption]

Already, CBI officials said they were examining the correspondence between Odisha chief minister Naveen Patnaik and the coal ministry which was then under Prime Minister Manmohan Singh. Patnaik had recommended Hindalco for the allocation of a coal block in his state.

Reports also said other companies were favoured by officials too, and more names could be added to the FIR in coming weeks.

PTI reported CBI sources as saying officials who were scrutinising documents found a letter written by Patnaik in 2005 requesting for a relook into Hindalco’s application for the Talabira II block in Odisha and seeking that the rejection be reversed. The Chief Minister could be questioned if a need was felt to seek his reasoning for recommending the blocks to Hindalco.

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For his part, Patnaik accepted recommending Hindalco for the Talabira II block but said his intention was merely to bring revenue and jobs to the state. “The letter was written because the state would have a great deal of revenue and many jobs,” Patnaik told journalists. He said he had received no intimation about being questioned.

Meanwhile, Hindalco responded to being named in the 14th FIR in the case by saying they had been “challenged and questioned and vilified” when they had not even entered the mine.

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In an interview to Business Today, Managing Director of Hindalco Industries Debu Bhattacharya said the company did indeed approach Patnaik asking if the state government would take up the matter with the Centre. In April 2005, a MoU was signed with the Odisha government with the latter undertaking to provide cola and electricity to Hindalco’s alumina and aluminium project. Told they had lost the mine, they approached Patnaik but were advised to also follow it up themselves with the Centre.