Action against Prakash Ind only after CBI probe complete: Govt

In the midst of a CBI probe into alleged black marketing of coal by Prakash Industries from mines alloted to it in Chhattisgarh, the government today said it would decide on action, including on the lease agreement, only after completion of the investigation.

On its own, the company said in a statement, "The extraction of coal, its quantity, grade and usage are being verified every year by the office of the Coal Controller, GoI, state mining department and other government agencies from time to time."

Asked about the CBI probe into alleged irregularities and violation of norms in the sale of coal by the company, Coal Minister Sriprakash Jaiswal said, "CBI is investigating the case, let it be complete. We will decide on the future course of action once its report comes."

 

The minister said the central investigating agency became active after his ministry initiated a drive to curb the "coal mafia" menace and black marketing.
   
Media reports said Prakash Industries, which acquired rights in 2003 to extract coal from Korba in Chhattisgarh for expansion of the capacity of its sponge iron plant from 4 million tonne per annum (MTPA) to 8 MTPA by 2004, sold the dry fuel in black.
    
The company, which could expand the capacity to only 6 MTPA in December, 2009, as per reports, accelerated coal extraction in violation of the approval and mined 9 lakh tonnes in 2004 against the mandate which allowed it to extract 10 lakh tonnes of coal per annum, starting with 5.5 lakh in the first year and gradually scaling it up to 10 lakh MTPA in 20 years.
    
The block from where it extracted coal is the only operational mine in the Hasdeo Arand area, classified by the Environment Ministry as a "no go" area.