Orissa frames new 'Coal Distribution Policy'

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After being cornered by the Opposition over the multi-crore coal distribution scam, the Orissa government has put in place a state specific 'Coal Distribution Policy'.

This new policy aims to prevent the supply of coal to the bogus consumers in the SME (Small and Medium Enterprises) sector and bring in greater transparency in the system. The objective of formulating the new policy is also to ensure the distribution of coal to the consumers in a fair and equitable manner.

According to this new policy, the approval of the respective district collector would be needed for the release order of coal to the SME units by the General Manager of a District Industrial Centre (DIC). The release order would be based on the assessment made by the General Manager of a DIC.

Sources in the state industries ministry said, “Four lakh tonnes of coal would be offered to the SME units in the state in the current financial year out of which two lakh tonnes would be distributed by the Orissa Small Industries Corporation (OSIC), one lakh tonne by the Orissa Consumer Cooperative Federation (OCCF) and the balance one lakh tonne by the National Small Industries Corporation (NSIC).”

Under the new policy, utmost transparency will be maintained and monitoring of coal distribution will be done at each level, added sources.

The areas of distribution of coal by the three government agencies has also been finalized. While NSIC would distribute coal in the districts of Khurda, Nayagarh, Sundergarh, Sambalpur, Jharsuguda and Mayurbhanj, the onus will be on OSIC for coal distribution in the districts of Rayagada, Cuttack, Ganjam, Gajapati, Malkangiri, Angul, Dhenkanal, Balasore and Bhadrak.Similarly, OCCF will be responsible for coal distribution in the districts of Jajpur, Boudh, Kendrapara, Sonepur, Jagatsinghpur, Kandhamal, Deogarh, Bargarh and Koraput.

It may be noted that the coal scam in Orissa had snowballed into a major controversy with the Opposition political leaders steadfast in their demand for the resignation of the two ministers- minister for housing and urban development Badri Narayan Patra and minister for school and mass education Pratap Jena, for their alleged involvement in the scam.

Chief Minister Naveen Patnaik had however, given a clean chit to the two ministers in the scam.