Naveen steers clear of Talabira-II coal block controversy

Denies allegations of undue favour to Aditya Birla Group-owned Hindalco

Odisha Chief Minister Naveen Patnaik on Thursday defended his move to recommend the Talabira-II coal block in favour of Aditya Birla Group-owned Hindalco Industries Ltd in 2005, denying allegations of undue favour to the company.

“The letter was written to the Centre in 2005 to examine the possibility of allocation of the Talabira-II coal block to Hindalco. The recommendation was made keeping in view the revenue and employment that would accrue to the state (from the company's end-use aluminium smelter plant),” Patnaik told the media here.

“The powers of allocation of any coal block lie with the Centre and let me clarify, there is no information received from the Central Bureau of Investigation (CBI) for questioning or otherwise,” he said.

Earlier, it was said the CBI was likely to question Patnaik on the matter.

“The state government gives utmost importance to mineral development in the state, taking into account the abundant reserves of bauxite, iron ore and coal, as this would mean value addition in the state, leading to more jobs for our people and more revenue for the government for our own development programmes,” said a release from the chief minister’s office.

It added with the best interests of the state in mind, the chief minister had written to the prime minister, stating Hindalco’s request for the Talabira-II coal block in the Ib valley of Jharsuguda district be examined.

Hindalco was setting up an aluminum smelter with an annual capacity of 2,60,000 tonnes in Sambalpur district, adjoining Jharsuguda, for which the company needed a captive power plant of 900-Mw capacity.

As power was a major raw material for aluminum smelters and such a project had the added benefit of promoting value addition in the state, adding to its revenue and generating employment, the chief minister had asked the Centre to examine Hindalco’s request, the release said.

“According to the procedure for coal block allocation, the final decision rests with the central government,” it added.

The Talabira-II block was allocated jointly to Mahanadi Coalfields, Neyveli Lignite Corporation and Hindalco.

Earlier, it was alleged Patnaik had shown undue favour to Naveen Jindal-promoted Jindal Steel & Power. He had recommended the Utkal B1 and Ramchandi promotional coal blocks for the company even before any memorandum of understanding was signed with it, it was alleged.

In its 14th first information report in the coal block allocation scam, the CBI claimed industrialist Kumar Mangalam Birla, head of the Aditya Birla Group, and former coal secretary P C Parakh conspired to overturn the screening committee recommendations and allot part of a coal block meant for state-owned entities to Birla’s company.