Struggling with post-Phailin rehabilitation in the state, Odisha chief minister Naveen Patnaik seems to be on a sticky wicket over the coal block allocated to Aditya Birla group company Hindalco in Jharsuguda district of the state.

The situation has become worse for Patnaik after the Prime Minister’s Office (PMO) stated that there was a strong recommendation by the Odisha CM, which led to a change in the decision to allocate the coal block to Hindalco.

While the opposition is baying for blood, Patnaik’s Biju Janata Dal (BJD) blamed the state Congress and BJP for launching what the party calls is a “misinformation campaign” against the CM. According to the party, writing to the prime minister and recommending a company for allocation of coal block is a routine affair for chief ministers, and Patnaik has company across the political spectrum in this.

In its 14th FIR filed in the coal block allocation scam, the CBI has named Aditya Birla group chairman Kumar Mangalam Birla and former union coal secretary PC Parakh, who, according to the probe agency, reversed his earlier decision against allotting the Jharsuguda coal block to Hindalco.

In Bhubaneswar, there has been discussion in the political circle that the Aditya Birla group had donated Rs 7.53 crore to BJD before the 2009 elections, landing Patrnaik in a difficult position.

Odisha pradesh Congress committee is already demanding a CBI probe into Patnaik’s role in the coal block allocation. State Congress spokesperson of the media cell Narsingh Mishra said the PMO has not given Naveen Patnaik a clean chit yet and Prime Minister Manmohan Singh had taken a decision based on recommendation of the Odisha chief minister.

Mishra refuted that there was corruption at the PM’s level. He alleged that Patnaik recommended Hindalco for the Talabira-II coal block, which was initially meant for public sector undertakings, as an “undue favour” after the Birla group donated his party Rs 7.53 crore before the last state elections.

Pyari Mohan Mohapatra, an erstwhile confidant of the chief minister and president of the Odisha Jan Morcha, said it was not proper on part of the chief minister to recommend Hindalco to the prime minister for allocation of the coal block after it was rejected by the screening committee.

Mohapatra alleged that Patnaik was trying to hoodwink everyone on the issue as the primary responsibility on leasing out mines lies with the state government as per the Mines and Minerals Development and Regulation Act. The Centre, he added, can only approve or reject the state government’s proposal.

Mohapatra, who was in BJD during the 2009 elections, admitted that the Aditya Birla group had donated Rs 7.53 crore to the party through three cheques before the polls. It was part of the move initiated by the election commission to make funding more transparent, he said, adding in the same vein that the corporate group had donated to other national and regional parties as well, and that it was a bold and good step rather than handing over cash.

The Odisha Jan Morcha president also demanded a CBI probe into the joint venture between Odisha Mining Corporation and Delhi-based Sainik Mining and Allied Services Limited for development of another coal block in the state. The CBI, he said, should investigate who was behind the decision and whether any kickback was involved in the deal. “Everyone involved in the deal should be prosecuted,” Mohapatra said.

Defending the CM, state agriculture minister Debi Prasad Mishra said Patnaik has done no wrong by writing to the prime minister to examine Hindalco’s plea for a coal block. He accused the Congress of playing mischief and launching a “disinformation campaign” against the BJD chief.

“Writing to the PM on issues is a standard practice for all chief ministers. There is a disinformation campaign against Patnaik by state Congress leaders who cannot tolerate the fact that the Odisha government is being praised for effectively handling cyclone Phailin,” Mishra said.

Releasing letters written by Madhya Pradesh chief minister Shivraj Singh Chouhan in 2007, Punjab CM Amrinder Singh, Prakash Singh Badal, union power minister Sushil Kumar Shinde in 2007 and union food processing and industries minister in 2008, the state minister claimed that many CMs and ministers have made requests to the prime minister favouring coal block to be allocated to some company or the other. “We do not think supporting allotment of a coal block to any private industry in the state is wrong,” Mishra said.

He alleged that news that the CBI would question Naveen Patnaik in the alleged coalgate scam was aimed at tarnishing the chief minister’s image.
Demanding withdrawal of statements by Congress and BJP leaders over the episode, the agriculture minister said the BJP should retrospect its stand as one of its own chief ministers, Raman Singh in Chhattisgarh, also made similar recommendations. Mishra said PMO has given a statement that there was no wrongdoing in the Hindalco coal block allocation.

BJD MP Pinaki Mishra said, “The CBI is a caged parrot which has been part of the misinformation campaign against the Odisha chief minister at the instruction of its political masters.” It is a mischief done by the Congress, which does not tolerate international acclaim for Naveen Patnaik for effective handling of the cyclone, he said.