Cong demands probe into state's bauxite ML push for L&T

The ML recommendation has been made in favour of L&T despite objections from different quarters drawn to the offices of the chief minister and chief secretary

The Opposition Congress today demanded a probe into the state government's recommendation for grant of mining lease (ML) over two bauxite deposits to engineering & construction major Larsen & Toubro (L&T).

Veteran Congress leader and Leader of Opposition in the state assembly Narasingha Mishra said, the government's recommendation reeks of corruption and this calls for an independent investigation.

"The state government had rejected the ML application of L&T in 2001. How could it now recommend the case for grant of ML. This is not only illegal, there is some other objective behind the decision and this smacks of corruption," Mishra said.

The (ML) rejection order may be tampered by the state government, he felt.

The ML recommendation has been made in favour of L&T despite objections from different quarters drawn to the offices of the chief minister and chief secretary.

"There is need for an independent investigation. A special investigation team appointed by Supreme Court or high court can do justice to the probe as both the state and Centre have entered into a mega deal to tone down CBI enquiry in the chit fund scam," he added.

The PL was granted to L&T in 1992 for bauxite mining. Two years later, it applied for ML in 1994 but it failed to fulfil its conditions like taking steps for setting up a unit.

The state government had rejected its ML application in September 2001 after serving it a show cause notice, said Mishra.

Stating that the validity of PL comes to an end with the cancellation of ML application, he said, the order of rejection was not challenged in the court by the company anywhere.

The senior Congress leader alleged that the state government, by ignoring the provisions in the new MMDR (Amendment) Act, 2015, recommended the ML application for L&T in May 2015.

He said, there is an exception in the MMDR Act that there will be no auction in case where the PL has been granted and ML application is pending. But in this case, ML application has been rejected and there is no PL, he added.

The ruling Biju Janata Dal (BJD), however, dismissed the Opposition leader's allegation.

"There is no point of corruption in the recommendation made for L&T. We have taken the views of legal luminaries before making a proposal to the Centre to grant the mining lease in favour of the company," said Prafulla Kumar Mallick, state steel and mines minister.

Mishra said, Vedanta has entered into an agreement with L&T to mine bauxite after it (Vedanta) failed in its bid to mine in Niyamgiri hills.

L&T, however, maintained that it held a PL and hence, was a rightful claimant for ML over the tw0 bauxite mines.