Congress demands CBI probe into mines deal

Raipur, Sep 11 (UNI) Opposition Congress in Chhattisgarh today demanded an inquiry by the Central Bureau of Investigation (CBI) into a controversial deal in which a ''non-descript'' private firm was granted a bonanza of 920 hectares of best quality iron ore deposits in the state.

Leader of opposition in the assembly Mahendra Karma and deputy leader Bhupesh Baghel called on Governor E S L Narasimhan seeking his intervention in the matter, pointing out that M/s Pushp Steel and Mining Private Limited, a company with no economic legitimacy, no manufacturing experience and no past or present profile in the industry, was granted 920 hectares of best quality iron ore deposits.

Throwing light on the deal, they submitted a memorandum stating that M/s Pushp Steel and Mining Private Limited was incorporated in June 2004 in New Delhi with a paid up capital of just Rs 2.25 lakh. It later entered into a Memorandum of Understanding (MOU) with the state government, proposing to make an investment of Rs 380 crores to set up a sponge iron plant, a captive power plant and low pollution compliant parts made out of captive materials.

Though the MOU stated that the company would commence implementation of the project within two years of signing of the MOU, the memorandum said the state government alloted 11.421 hectares of land in Borai industrial area in Durg district but not a single brick had been placed on the land.

Pointing out that there has been a hurry on the part of the state government, the memorandum said all necessary procedures were relaxed to favour this company, paricularly when a large number of genuine sponge iron and steel plants were craving for grant of iron ore reserves.

It pointed out that even a company like Tata Steel's case for mining lease was not recommended on the ground that the area concerned was yet to be prospected. However, this principle was not applied for M/s Pushp Steel Private Limited.

Alleging that Chief Minister Dr Raman Singh, who holds the mining portfolio, and senior officials had abused power and authority to cause undue and illegal benefit to a private party, the Congress leaders, in their memoramdum, said it was a case of corruption in high positions. They demanded registration of a First Information Report (FIR) against Chief Minister and all public servants connected with this transaction.

The Congress leaders urged the Governor to request the CBI to register a case under the Prevention of Corruption Act, take charge of all records pertaining to the grant of mining lease and investigate the matter.

UNI