Following the CBI raids on Nava Bharat Power Private Limited and its promoters, Y. Harish Chandra Prasad and P. Trivikrama Prasad, the coal allocations of Rampia in Odisha are under scrutiny. Nava Bharat Power and five other companies were allotted the Rampia block.
Earlier, the Comptroller and Auditor General’s report estimated that financial gains to the tune of Rs 1.86 lakh cr was likely to have accrued to private coal block allottees in 60 blocks. The CAG, in its report, mentioned that Hyderabad-based private companies were allocated mixed mines where mining plans were not available. Sterlite Energy, GMR Energy, Arcelor Mittal India, Lanco Group, Nava Bharat Power and Reliance Energy were allotted Rampia and the dip side of Rampia in the IB valley of Sundargarh in Odisha in January 2008.
Arcelor Mittal India and GVK Powers (Goindwal Sahib) were allotted the Seregarha block in Jharkand in January 2008. Sources said that out of 108 applications received for coal blocks in Orissa, only two were shortlisted for presentation. However, the screening committee recommended six companies, including Nava Bharat for allocation. Rampia Coal Mine and Energy Private Limited (RCMEPL) is a joint venture company of the six companies formed to develop Rampia captive coal mines. RCMEPL, after mining the coal, shall transfer it to the JV partners for their captive end-use plant.
Nava Bharat, floated in December 2005, with a capital of Rs 1 lakh, signed an MoU with Odisha in 2006 for setting up a power plant in Dhenkanal. After getting coal linkage, it was also allotted the coal blocks. Meanwhile, according to industrialist Y. Harischandra Prasad, the CBI came and took some documents and said he did nothing wrong in selling his shares.