Cong demands CBI probe in ICL disinvestment scam

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Bhubaneswar, Mar 25 (UNI) The Opposition Congress in Orissa today alleged huge kickback of Rs 200 crore in the disinvestment of the state-owned IDCOL Cement Limited(ICL) in 2003 and demanded a CBI probe besides resignation of Chief Minister Naveen Patnaik.

Addressing newspersons here, Congress Chief Whip in the state Assembly Satya Bhusan Sahu said the CAG report of 2004-2005, which was suppressed by the government, had exposed the undervaluation of the ICL property during the disinvestment.

Mr Sahu said he had procured the CAG report through RTI Act, which had exposed the transparent credential of Mr Patnaik.

A Rs 1000 crore property of the ICL, which was making profit even after modernisation and expansion with an investment of 182.07 crore in 1996, was sold to ACC for Rs 176.41 crores in 2003, the Congress Chief Whip alleged.

He said the CAG had pointed out that despite improvement in the financial performance, it was proposed to the Cabinet for disinvestment of entire share-holding of IDCOL contrary to the earlier decision of the state government.

Mr Sahu said that though the ICL had 1122 acres of land which included 993 acres of leasehold lands, the land as well as other assets of the ICL were not revalued by the management for disinvestment purpose.

Quoting the CAG report, he further said the land cost of the ICL should have been Rs 8976.00 lakh as against Rs 427 lakh fixed by the book value by the advisor.

The Congress leader said the 23 crore shares of IDCOL in ICL were sold to the ACC at the rate of Rs 7.67 per share while based on the government rate, the valuation per share should have been Rs 11 resulting under valuation of Rs 8549.00 lakh.

This apart, the shares as well as the reserve price of ICL, were fixed by the Advisor after the financial bids were received which was not fair and transparent as per the general principle of sales since the Advisor was also entrusted to do the marketing of the offer, Mr Sahu said.

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