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Coal India watchdog flags 11 supply pacts

CIL has signed fuel-supply pacts with many firms, including those named in coal-block allocation scam, says report
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First Published: Mon, Feb 04 2013. 09 53 AM IST
Of the 11 cases, supply pacts have been executed in three while agreements have been signed in two. Photo: Getty Images
Of the 11 cases, supply pacts have been executed in three while agreements have been signed in two. Photo: Getty Images
Updated: Mon, Feb 04 2013. 11 41 PM IST
New Delhi: At least 11 fuel-supply pacts that have either been signed by Coal India Ltd (CIL) with power producers, or are in the process of being signed, have been flagged by the vigilance wing of the miner.
According to an internal company document reviewed by Mint, in at least 11 cases, there may have been “deficient documents” for the same.
The Times of India newspaper first reported on this on Monday, citing an internal report by the company’s chief vigilance officer that was submitted to the coal ministry.
To be sure, of the 11 cases, supply pacts have been executed in three while agreements have been signed in two.
According to the internal company document reviewed by Mint, the power firms in question include Dhariwal Infrastructure Pvt. Ltd, SKS Power Generation (Chhattisgarh) Ltd, NRI Power and Steel Pvt. Ltd, Maruti Clean Coal and Power Ltd, Neeraj Power Pvt. Ltd, NCPP Dadri that is a unit of NTPC Ltd at Dadri in Uttar Pradesh, Maithon Power Ltd, Rosa Power Supply Co. Ltd controlled by Reliance Power Ltd, Adhunik Power and Natural Resources Ltd, Damodar Valley Corp. and Uttar Pradesh Power Corp. Ltd (UPPCL).
While Maithon, Rosa and Adhunik pacts have been executed, agreements have been signed with two government firms—Damodar Valley and NCPP.
These pacts were signed with several CIL subsidiaries including South Eastern Coalfields Ltd, Central Coalfields Ltd (CCL), Eastern Coalfields Ltd and Northern Coalfields Ltd.
According to the internal document, the discrepancies relate to several technical issues—from the non-signing of loan agreements to those related to the allotment of land, etc. CIL maintains these are purely technical issues. The names of several of these had figured prominently in the alleged coal block allotment scam last year.
In case of Dhariwal Infrastructure, the discrepancy relates to non-submission of a credit arrangement letter for a loan assistance of Rs.2,137.5 crore. In case of SKS Power, the report points to a “confusion” in issuance of a letter for a term loan of Rs.1,318 crore. In case of Maruti Clean Coal, the discrepancy relates to grant of environment clearance.
The document states that in case of NCPP, the issue relates to at least 81.625 acre of additional land that NTPC has not yet been able to acquire from the Uttar Pradesh government, despite having deposited the money for the same.
“It is true there is a vigilance report, but these objections are purely on matters of technicality. So we are not unduly worried about it,” said S. Narsing Rao, CIL chairman, in a phone interview. “CIL is taking all precautions to verify the required milestones and conditions before signing fuel-supply agreements,” a coal ministry spokesperson said. “There is no question of going out of the way or violation of any norm.”
Spokespersons for CESC Ltd, which owns Dhariwal Infrastructure, and UPPCL declined comment.
An NTPC spokesperson, too, did not offer a comment.
R.N. Sen, chairman at Damodar Valley Corp., was not available for comment. His office said he was in a meeting.
A spokesperson for Rosa Power said CCL’s query on its location in Chaudhera had been cleared after it submitted a certificate on the name of the village from land revenue officials.
Email queries sent to Maruti Clean Coal, Maithon, Adhunik remained unanswered. Executives of SKS Power, NRI Power and Neeraj Power could not be reached for comment.
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First Published: Mon, Feb 04 2013. 09 53 AM IST
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