Coal scam: CBI to grill representatives of 3 PSUs

The CBI is likely to question representatives of three state government-run public sector undertakings (PSUs) next week in connection with its probe related to the Coalgate scam.

According to sources, the state government PSUs who were allocated blocks include Chhattisgarh Mineral Development Corporation Limited, West Bengal Mineral Development Trading Corporation, Jharkhand State Mineral Development Corporation and Maharshtra State Mining Corporation.
“At least 70 captive coal blocks were allocated to central and state PSUs between 1993 and 2009. Allocations of 65 blocks are under the scanner of the CBI. The agency is now planning to question officials of at least three PSUs next week,” sources said. The CBI in September, 2012 had registered its third “Preliminary Enquiry” (PE) to probe alleged irregularities in the allocation of captive coal blocks to central and state government PSUs during 1993 to 2009.
The agency is also planning to approach the competent authority to begin probe against some officials of the central government PSUs, sources said. The agency is also preparing to seek clarification from Chattisgarh and Jharkhand governments in connection with its probe related to allocations of three coal blocks made in 2007, sources added. “Preliminary investigations have revealed that irregularities were allegedly committed in the allocations of three captive coal blocks of North Dhadu in Jharkhand and Madanpur-South in Chattisgarh. The agency is scrutinising documents submitted by these companies at the time of filing applications for the coal blocks”, sources said. The agency sleuths are also probing the role certain officials of the coal ministry and steel ministry in this regard, they added.
The allocation of coal blocks to private companies for captive use started in 1993 when Coal Mines (Nationalisation) Act, 1973 was amended with the objective of attracting private investments.

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