Units with captive coal blocks changing hands

CHANDRAPUR: Industrialists having projects in Chandrapur and nearby areas with captive coal blocks have started transferring units to giant industrial groups fetching hefty profits running into hundreds of crores of rupees. The practice is known to be continuing for the last two years and at least six industries, including power and sponge iron plants in this area, have sold out their projects with captive coal blocks and coal linkage to giant industrial groups.MP Hansraj Ahir has strongly objected to this practice and termed it as 'hand change'. He has filed a complaint with the prime minister and Union coal minister.
With rich mineral resources, Chandrapur has attracted several steel and power industries in the area. Several companies have acquired plots in MIDCs here for their plants and got captive coal blocks for running their proposed plants from the coal ministry. However, it has come to fore that a bunch of them have sold out their industries with captive coal blocks to even bigger industrial groups and got hefty profits. "It is a big conspiracy witnessed in Chandrapur industrial area and places around. The companies invested a few crores of rupees for acquiring plots in MIDCs and captive coal blocks. Now, they are selling the entire setup along with coal blocks to bigger industrial groups fetching 20 times more profit. Such 'hand change' is against the policies of the government," said Ahir and termed it as financial loot of the government.
Ahir, who is also member of the standing committee for coal, had been opposing the almost free allotment of captive coal blocks to private companies for the last three years and had demanded revoking such allotments. "I had raised the issue in Lok Sabha and demanded auction of coal blocks so that the government can get handsome revenue. But the demand was overlooked. However, the practice of 'hand change' has revealed the greed of industrialists and proved that the government policy to provide coal blocks almost free of cost was wrong," Ahir asserted.
Ahir has sent a written complaint to coal minister Shriprakash Jaiswal and Prime Minister Manmohan Singh. He held that the government needs to look seriously into the matter and cancel coal blocks allotted to the erring companies. He alleged that such industrialists are misusing the policies of the government and earning thousands of crores of rupees.
General secretary of BJP's state industrial cell Madhusudan Roongta claimed that directors of two power projects and a sponge iron project in Tadali MIDC here have sold out their units, captive coal blocks and coal linkage to bigger industrial group. The process of sale of one sponge iron project with two captive coal blocks is underway. A sponge iron project with a coal block in Umred too has been transferred to a major industrial group. A big power plant in Warora has been handed over to bigger industrial group, Roongta alleged. He has filed a complaint with chief minister Prithviraj Chavan. "A few years back, these industries acquired land in MIDC at paltry rates for power projects and sponge iron plants. Later, they went on to acquire captive coal blocks which were allotted to them at a nominal rate. The entire investment in different cases ranges between Rs 10 and 50 crore. But now that they have coal blocks worth thousands of crores ready for mining, they have started selling projects with coal blocks at 20 times profit," said Roongta. He demanded additional compensation to those farmers whose land was acquired for the project or coal block, in proportion to profit fetched by former owners of such industries.