Consultant given full rights to deal coal blocks: Cong

Demands CBI inquiry into the matter

Raipur, August 31, 2012

Congress on Friday claimed to have discovered new angle in Bhatgaon-II and Bhatgaon-II Extension coal blocks revealing that Chhattisgarh Mineral Development Corporation (CMDC), instead of first selecting a company for commercial mining of two blocks, preferred to appoint a Nagpur-based company as a consultant without inviting bids and then gave it all rights of corporation’s board of directors. Demanding CBI inquiry into the entire matter the party announced to stage dharna at Bhatgaon on Saturday.

Interacting with media persons at Congress Bhawan, PCC president Nandkumar Patel and senior party MLA Mohammad Akbar said Chief Minister Raman Singh squandered state’s mineral resources in last eight years.

“The Government of India allocated Bhatgaon-II and Bhatgaon-II Extension coal blocks to CMDC on recommendations of Chhattisgarh government which pointed that state industries were facing acute coal crisis and only CMDC could provide them coal at reasonable rate. But the state government conspired to take benefit from the two coal blocks, hence it first appointed Nagpur-based a’XYKno Capital Services Limited as a consultant which then selected SMS Infrastructure Limited and Solar Industries Limited (both from Nagpur) through bidding process for commercial mining,” Akbar charged.

“Our objection is on power given to the consultant that misused it benefit the two Nagpur-based companies. The CMDC authorised the consultant to prepare the bid documents, open and evaluate technical and commercial bids, award bids, sign pacts with the selected bidders and form joint venture company. While the CAG has already said that the state had incurred Rs 1052 crore loss in irregularities in coal blocks, the assessment on current rate underlines the loss to the exchequer as much as Rs 5000 crore,” he said.

“The CM did not trust anybody, hence he kept mining portfolio with him. Mining lease to Bamleshwari Minerals, irregularities in tendering for commercial mining of Bhatgaon-II and Bhatgaon-II Extension coal blocks have exposed the ruling party. It is the BJP government which has made ‘mota maal’ (mega bucks) and the benefit, of course, has reached to the party’s national president Nitin Gadkari via Sancheti brothers from CM,” alleged Patel.

“Besides Bhatgaon, we will stage dharna at Gunderdehi (Balod) on Saturday as Sancheti brothers have constructed road there and got tax waiver. The district units of Congress will stage dharna in every place where Sancheti brothers have carried or carrying any project,” said Patel.

On former BJP president Rajnath Singh arrival to attend party dharna against coal scam, Patel said he would simply try to save the Raman Singh-government which has already been exposed.