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This is an archive article published on June 30, 1997

Swadeshi Manch raps Sena-BJP government over coal mine deal

NAGPUR, June 29: The Bharatiya Janata Party (BJP) in Maharashtra seems to have been pushed into a corner over the allotment of land for cap...

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NAGPUR, June 29: The Bharatiya Janata Party (BJP) in Maharashtra seems to have been pushed into a corner over the allotment of land for captive coal mining to a private power project coming up in Chandrapur district of Vidarbha.

On the one hand, the Swadeshi Jagran Manch, a frontal organisation of Rashtriya Swayamsevak Sangh (RSS) has warned the BJP-Shiv Sena government against going ahead with the deal, and on the other, BJP MP from Nagpur, Banwarilal Purohit, has agreed to provide some `incriminating’ documents to Maharashtra Congress chief, Ranjit Deshmukh.

Significantly, it was Banwarilal Purohit, who first drew attention to the possibility of irregularities in the allotment of nearly 8,900 acres of land to Central Indian Coal Company. The coal from the land was for a thermal power project to be set up at Bhadravati, by its sister concern the Central India Power Company Limited. The coal in this area is estimated to be worth Rs 20,000 crore. Purohit had asked why the state government should take the unprecedented step of acquiring land first and then hand it over to a private company.

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The companies belong to the Ispat group, and the Swadeshi Jagran Manch has indicated that RTZ of Australia, a coal-mining company, might be involved. “After Enron of USA, now it is RTZ of Australia which is being favoured in the name of Central India Coal Company Limited,” says Anil Gachke, convenor of the Manch’s action group on power, in a letter written to Chief Minister Manohar Joshi and Deputy Chief Minister Gopinath Munde. After Purohit took up cudgels against his party’s government in the state and alleged foul play in the deal, the BJP leadership had expressed its displeasure. Leaders including Pramod Mahajan and Gopinath Munde had publicly ridiculed Purohit’s assumption and even hinted that the party would initiate disciplinary action against him.

Despite clearly becoming a political handicap for his party, Purohit continued to go to the press from time to time with his allegations. As a result of this, he is isolated and sidelined today. The BJP and its frontal organisations have tried to limit his public appearances by not inviting him to their gatherings. The Manch’s move, therefore, gives the issue an interesting turn. There have been reports that Purohit always had the backing of the Sangh Parivar when he took up the case. In its letter to the CM and Deputy CM, the Manch has not mentioned Purohit’s role. But, a copy has been marked to him with a request to “forward the available documents to us for study.” That, in itself, should be enough indication to anyone who has ever attended the Shakha in his life. Gopinath Munde has.

The Manch’s letter is strongly-worded. “It is strange that, like the Enron deal, this one too has been rushed through under the pressure of vested interests, conveniently ignoring the need to call for competitive bids. As a result of this, a loss of several thousand crores of rupees is likely to be caused to the state,” the missive states. It also questions Joshi and Munde’s motives for accepting a `take or pay’ clause which assures payments to the coal company even if the power company does not take the coal. The Manch has demanded that the Maharashtra government make public all agreements with the company and not proceed any further unless there is a debate in the public and the legislature.

At this point, the Congress too has developed an interest in the issue. The MPCC chief, Ranjit Deshmukh, called upon Purohit at his residence the other day and discussed the deal. According to Deshmukh, the BJP MP agreed to provide all the relevant details and documents. The MPCC has constituted a three-member committee, headed by its General Secretary and former MLA, Avinash Pande to study the issue.

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