CBI begins probe against 24 firms

Stepping up its probe into allocation of coal block since 1993,the CBI registered a preliminary enquiry and began investigations against 24 companies and government servants on Thursday.

The CBI said it will examine ownership of the 24 firms — their names were sent to the Central Vigilance Commission recently — which were allotted coal blocks despite their poor credentials. The CBI has asked the coal ministry and various states for documents related to allocation to these 24 companies. Sources said the probe will encompass the role of some state-run companies in allocating coal blocks to private firms.

Coal blocks began to be allotted to private companies for captive use in 1993 after the Coal Mines (Nationalisation) Act,1973,was amended to attract investment in power,cement and steel industries.

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The complaint that led to the latest probe was made by Coal Minister Sriprakash Jaiswal and seven Congress MPs. They sought a probe into coal block allocations since 1993 and provided a list of 24 firms that benefited.

“Investigation must cover what system the state governments adopted to ensure transparent allocation and what criteria and guidelines were adopted and followed,” the complaint said.