NGO seeks CBI probe on contracts for steel project in HC

A PIL seeking a CBI probe into the award of contracts worth Rs 14,000 crore relating to setting up of a major greenfield integrated steel plant in Chhattisgarh has been filed in Delhi High Court, alleging irregularities by top officials of a navaratna PSU.
The petition by an NGO has sought a probe into the award of the contracts by the National Mineral Development Corporation Ltd (NMDC) for an integrated steel project with an estimated capacity of three million tonne per annum, alleging irregularities by its top officials.
The NGO, Centre for RTI, has alleged in its plea that the contract for inter-plant pipeline gas mixing and boosting station at Nagarnar near Jagdalpur in Chhattisgarh, worth Rs 148 crore, was awarded to NICCO Corporation despite it being ineligible.

It said the petition was filed to pray for "a direction for investigation into irregularities committed by the top management officials of the respondent 3 (NMDC) herein in awarding the contract for Interplant Pipeline and Gas Mixing and Boosting Station at Nagarnar, located 16 KM from Jagdalpur, Chhattisgarh as well as other contracts related to this project".
The petition has alleged that NICCO allegedly "concealed material facts in respect of its ineligibility for executing the contract".
The NGO, in its plea filed through advocate Nirmal Kumar Ambastha, alleged that NMDCL allowed Oriental NICCO Project Pvt Ltd, which purchased the project division of NICCO Corporation, to carry out the work as a sub-contractor despite it too being ineligible.

"The foundation stone for the project was laid on September 3, 2008. The land for the plant has already been acquired as of August 2010 and, as of December 2013, 16 major packages of the steel plant have already been awarded at a cost of around Rs 14,000 crore," the petition has claimed.