An internal probe by the coal ministry into the allotment of blocks between 2006 and 2009 has found cases of obscure firms allegedly merging with other firms after getting their hands on the resource,or allegedly diverting excess fuel in violation of norms.
The ongoing inquiry began after a CAG report in March alleged irregularities in the allotment of blocks in 2004-2009. As reported earlier,the ministry has found allotments being misused by firms which did not deserve an allotment,or are squatting on blocks without starting production.
According to the latest findings,a company called Veerangana Steels Ltd,which was allotted three coal blocks in Yavatmal,Maharashtra,in 2005,no longer exists. The Nagpur-based firm had been re-christened as Topworth Urja and Metals Ltd,and merged with another firm called Crest Steel and Power Ltd,a Chhattisgarh-based steel trading firm.
In a second case,the ministry found that another Nagpur-based firm,Sunflag Iron and Steel Company,which was allotted Belgaon block in Wardha,Maharashtra,and has been producing coal from it since December 2007,could be diverting excess fuel.
The Coal Controllers Organisation (CCO) has informed the ministry that between December 2008 and November 2009,the firm produced 1.2 lakh tonnes,and was supposed to use it all for its 15 MW captive power plant in Bhandara.
Veerangana Steels Ltd rechristened as Topworth Urja and Metals Ltd,merged with Crest Steel and Power Ltd,says report
Sunflag Iron and Steel Company supposed to use all coal for power plant; but could be diverting,shows probe