Lime scam case: Nalco CMD removed

Bagra was functioning as CMD after arrest of previous CMD Srivastava.

BL Bagra,acting CMD of Navratna PSU National Aluminium Company Nalco,was on Wednesday removed from his post by the mines ministry even as an inquiry by Central Vigilance Commission over his involvement in a lime scam is on.

Bagra,who took over as acting CMD on February 27 last year following the arrest of former CMD Abhay Kumar Srivastava by the Central Bureau of Investigation CBI in a bribery case,was named by Nalcos chief vigilance officer CVO PK Mohanty along with two of the companys directors in Rs 15-crore lime scam. In July this year,The Indian Express had reported Bagras alleged involvement in the lime scam.

Bagra,who is already retired,was functioning as CMD on a three-month term renewal basis after Srivastavas exit.

Top Nalco sources said his last extension ended on August 27. Further extension was not granted as CVC was inquiring into his role in lime scam as well as CBI,which is probing into his role in last years Graduate Engineer Trainee appointment scam.

The order from the mines ministry said the next seniormost director Anshuman Das,now director commercial would be the new acting CMD.

On June 12 this year, Mohanty submitted a report No. V/01/170 to the Ministry of Mines and the Central Vigilance Commission about the lime scam in which the NIT notice inviting tender issued for procurement of lime were manipulated in order to favour certain suppliers. The group of senior officials headed by Bagra reportedly relaxed the conditions for the supplier which resulted in a loss of Rs 15 crore for the company.

The CVO report however noted that the standards issued by the Bureau of Indian Standards for lime were waived off this year in the NIT conditions. The CVO found that the lime supplier that feeds lime to the JK Paper Mills at Rayagada,charged 40 per cent more for the same quality of lime supplied to Nalco.

Govt proposes more power to SERCs

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In the wake of the recent power grid collapse,government proposes to give more powers to the state regulators through an amendment in the Electricity Act likely to be introduced during the next Parliament session. There is a need to provide more teeth to the State Electricity Regulatory Commissions SERCs. They should be given more liberty so that grid discipline is enforced, power minister Veerappa Moily said.