Did Koda push aid Tatas steal a deal in Ankua?

The Radia tapes suggest that Koda had asked a bribe of Rs 150 cr for granting the iron ore licence

Did Madhu Koda, as the chief minister of Jharkhand, favour Tata Steel in securing Ankua iron ore?

The big question came up after the leaked Niira Radia tapes hinted at alleged favours to public servants in return for allotment of iron ore mines to Tata Steel.

The Central Bureau of Investigation (CBI) is now probing into the allegations. Documents available with Business Standard reveal that Koda, the chief minister from 2006 to 2008, had taken the initiative to allot an additional 903 hectares to Tata Steel within 17 days, despite a state government committee granting it only 905 hectares. The committee was responsible for hearing the prospecting applications filed by various companies.

LAND CONTROVERSY

• Mar 22, '07: Hearing committee recommends 905 hectares of Ankua iron ore mine in West Singbhum district in Jharkhand to Tata Steel
   
• Apr 30, '07: Department of Mines and the state government prepare a note for approval of Chief Minister Madhu Koda
   
• May 4, '07: Tata Steel writes a letter to Koda for an increase in allotment area
   
• May 15, '07: Koda forwards the letter to secretary of mines department, asking Tata Steel's allotment be reconsidered
   
• May 17, '07: Both deputy secretary and secretary clear the proposal on one day to add 903 hectares to Tata's allotment, taking the total land area to 1,808 hectares
  

 

May 21, '07: Koda clears the proposal
 

May '09: Tata Steel secures prospecting licence
 

Mar '12: Mining tribunal orders in favour of ElectroSteel Castings, asking the department to reduce the area beyond 905 hectares

Thus, after Koda's recommendation, the total area for Tata Steel at Ankua in West Singbhum district stood at 1,808 hectares - reportedly holding about 100 million tonnes of iron ore. No hearing was done while granting the additional area. The area overlapped with that sought by 90 mining lease applications filed by other parties. Tata Steel did not respond to the email queries sent by Business Standard on Tuesday.

The Radia tapes suggest that Koda had asked a bribe of Rs 150 crore for granting the iron ore licence. The company had later denied the involvement of any payoffs in getting the licence.

It was on March 22, 2007, that the committee had cleared the application by Tata Steel. However, on May 4, 2007, Tata Steel had written a letter to Koda, seeking an increase in the land area, at a time when the final note by the mines department was awaiting clearance of the minister.

Koda asked the secretary, department of mines, to reconsider Tata Steel's allotment on May 15. Within two days, a deputy secretary and secretary cleared the proposal to give additional land to the company. On the very next working day, on May 21, Koda also cleared the proposal.

After a complaint by Electrosteel Castings, one of the 90 applicants for additional 903 hectares, a mining tribunal had asked for a revision of the allotment in 2012, as due process was not followed. "We have been continuously requesting the Jharkhand government to reduce the area, as per order of mines tribunal, which the government is yet to implement. They should come up with a proper hearing process in which all the 90 applicants are heard," said a senior Electrosteel Castings official.

On the controversy over the allotment, B B Singh, director (mines), Jharkhand government, told Business Standard: "I don't remember the entire sequence of events or dates at which it was allotted. However, with the Supreme Court asking for an investigation into it, it needs to be verified."

Getting land for Tata Steel was, however, not easy. The company had to wait till 2009 when the actual prospecting licence was granted. At that time, the state was under the President's Rule and Niira Radia had allegedly lobbied hard for the allotment. The case is among the six on which the Supreme Court had recently ordered a CBI inquiry.