Jharkhand ex-babu courts coal controversy

The dual probe by the Central Bureau of Investigation [CBI] and the inter-ministerial group [IMG] is set to unravel several layers of bureaucratic and political connivance at the state level, where companies with no standing or experience signed MoUs with the Jharkhand government to set-up power, steel, cement and aluminium plants to facilitate subsequent allotment of money-spinning coal blocks to them. A lot of these MoUs were signed during Chief Minister Arjun Munda's first tenure between 2004 and 2006. 

One such prominent company is Usha Martin, which too signed an MoU during this time. On Thursday, Usha Martin along with Monnet Ispat and Energy and Corporate Ispat have been asked to present their case to the IMG, explaining the delay in developing coal blocks. B K Jhawar-promoted Usha Martin was allotted Lohari coal block in Jharkhand for making steel in 2005. Corporate Ispat and Alloys, which is promoted by Manoj Jayaswal, got the Chitarpur block in Jharkhand in September 2005 for producing sponge iron.

Jayaswal is a promoter of the Ahijeet group, whose three companies – AMR Iron & Steel, JLD Yavatmal and JAS Infrastructure – were booked by the CBI on Tuesday for various irregularities. Curiously, the Abhijeet group has the former Jharkhand chief secretary P P Sharma as an independent director on its board. Since retirement Sharma has been running a consultancy and claims that he has 'created a record for maximum number of MoU signed and total net worth with industry in 2005-06 to attract them to Jharkhand as Chief Secy'.

He is presently on the boards of Aditya Birla Chemicals, Abhijeet Power Ltd, Corporate Power Ltd [SPV] & chairman [non-executive] of Burnpur Cements. All these companies signed MoUs with the Jharkhand government headed by Munda and Sharma as chief secretary. An alumnus of Doon School, St Stephen's College and the Delhi School of Economics, Sharma much later acquired a law degree from a non-descript college and his consultancy also doubles up as law firm.

His company P P Sharma and Associates proudly procliams itself to be 'Advisors, Business Consultants and Project Facilitators'. According to sources, Sharma's clout within the state government and among the business houses was such that even Munda's successor Madhu Koda had to recall him from suspension to 'facilitate investments in state'. Koda is behind bars in several corruption cases.

Meanwhile, sources said that there were strong chances of several such companies, which signed MoUs with Sharma's facilitation, would be recommended for de-allocation. Usha Martin's Lohari block has already been recommended once for de-allocation by the IMG as 'there was hardly any physical progress or investment reported', industry sources said.