CBI files fresh case on coal block allocation

According to the CBI FIR, NDIL, now owned by JSW Steel, in March 1998 requested the Ministry of Coal for Khiloni coal block in Maharashtra. NDIL’s case was discussed in the 12th Screening Committee meeting held on April 3, 1998.

“WCL informed that Khiloni is the future mining programme of WCL in placement of existing mines, which would get depleted soon. CIL (Coal India Ltd) also pointed out that the requirements of coal of M/S NDIL could be met without allocation of either Khiloni or Lohara Extn Block. The Screening Committee also decided that the Khiloni block could not be allocated to the company at the cost of WCL’s interests,” the FIR said.

According to the CBI, despite this, the 13th meeting of the Screening Committee allocated the block to NDIL and the then Maharashtra government, led by the Shiv Sena-BJP coalition, made necessary recommendations.

“Enquiry further revealed that the case was again discussed in the 13th Screening Committee meeting on 24.08.1998 and the committee decided to allocate the Khiloni block to M/S NDIL. The committee also directed CIL to include Khiloni block in the list of blocks to be offered for captive mining,” the FIR said.

A week later, the CBI alleged, the then government of Maharashtra recommended allocation of Khiloni block to M/s CICCO, a subsidiary of NDIL in lieu of Lohara West coal block that was given to Maharashtra State Electricity Board (MSEB).

Accusing the company of cheating the Government of India in conspiracy with unknown public servants, the FIR alleged, “Khiloni coal block was not in the list of identified coal blocks for captive mining and the apex committee of CIL did not agree to allocation of this coal block to M/s NDIL. Further, 12th Screening Committee did not agree to allocation of Khjilni coal block to NDIL. Even then 13th SC allocated it to NDIL…”

The FIR also alleged that in November 1995, NDIL floated a company named Ispat Energy Ltd (later known as Ispat Urja Ltd). IUL in turn owned 26% stake each in two companies of CICCO and CIPCO with effective control of the management of the companies.

“IUL was considered a holding company, M/S CICCO as the power generating company and CIPCO as the mining company. None of them were either applicant for a coal block nor were allotted one. The coal blocks had been allotted to NDIL and the name of NDIL did not find a mention in the said notification (of Ministry of Coal that allowed mining and power generation to CIPCO and CICCO). The notification was neither in consonance with the guidelines issued for mining of coal blocks by associated coal companies nor with the allocation letter issued to NDIL,” the FIR said.