Seize performance guarantee bond of SMSIL, SEL: Akbar

For delaying project implementation of Bhatgaon-II & Bhatgaon-II extension coal blocks

Also demands removal of Ajay Sancheti from MD post of JV company formed by CMDC, SMSIL & SEL

Raipur, October 05, 2012

Congress MLA Mohammad Akbar on Friday demanded seizure of performance guarantee bond of SMS Infrastructure Limited (SMSIL) and Solar Explosives Limited (SEL) for delaying project implementation of Bhatgaon-II & Bhatgaon-II extension coal blocks according to time-bound programme mentioned under milestone chart fixed by the Centre.

He provided the documents that said the Union Coal ministry assigned the two coal blocks to the mining lease joint venture (JV) company formed by Chhattisgarh Mineral Development Corporation (CMDC), SMSIL and SEL.

According to condition, although the mining lease would be on the name of CMDC, it would be the responsibility of SMSIL and SEL to implement the project by obtaining clearance/approval (including mining lease, forest clearance, etc) from all the departments and by acquiring lands and rehabilitating the displaced ones.

“The SMSIL and SEL stalled project implementation by 16 months and also delayed coal excavation works by 14 months. The SMSIL and SEL had deposited Rs 35.04 crore with the CMDC as performance guarantee bond. According to agreement, the corporation should seize half of the bond, i.e. Rs 17.52 crore,” he demanded.

Further demanding removal of Ajay Sancheti from the post of managing director (MD) of the JV company, Akbar said when the CMDC held 51 percent stakes of the JV company then how could Sancheti be inducted on corporation’s board with such capacity.

“As per clause of 3.8.1 of CMDC agreement, the corporation had agreed to the formation of special purpose vehicle (SPV) between SMSIL and SEL. The agreement said the SPV will represent and take over the roles and responsibilities of SMSIL and SEL so that the JV company is ultimately held between CMDC and the SPV in the shareholding ration of 51:49. Evidently, the CMDC is the owner of the JV company,” he elaborated.

“In the extraordinary general meeting held on January 15, 2009, the CMDC board was supposed to appoint ex-officio chairman, ex-officio MD and ex-officio GM (mines) of the corporation. But in the meeting, Ajay Sancheti was appointed as MD of the board in presence of CMDC chairman Gaurishankar Agrawal, MD SK Trivedi and GM (mines) Prem Singh Yadav,” he added.

He also objected over the import/export job of marble, granite and bauxite assigned to SMSIL and SEL in the agreement of the JV company. “When the JV company was exclusively constituted for coal blocks then how come import/export of marble, granite and bauxite can be included in the agreement,” he asked.

Besides, in the backdrop of Mantralaya shifting to Naya Raipur, Akbar has demanded ‘strong security’ for documents of the state Coal ministry indicating that each file holds significance when details would be sought pertaining to coal blocks allocation in Chhattisgarh.