CPI (M) leaders seek CBI probe into alleged ‘coking coal scam’ in Vizag Steel Plant

CPI(M) and GVMC demand CBI inquiry into alleged 'coking coal scam' in RINL-VSP, alleging substandard raw material procurement & paving way for privatisation.

CPI(M) Visakhapatnam district secretary M. Jaggunaidu and Greater Visakhapatnam Municipal Corporation  (GVMC) 78th ward corporator B. Ganga Rao demanded a CBI inquiry into the alleged ‘coking coal scam’ in RINL-Visakhapatnam Steel Plant.

The BJP-led union government is slowly pushing the profitable plant into losses and paving the way for the privatisation of the plant, they alleged.

On Saturday, Mr. Jaggunaidu and Mr. Ganga Rao said they would soon file an official complaint with the CBI and vigilance officials on the scandal in purchasing coking coal for the plant. They further alleged that the plant management had procured substandard raw material (coking coal) for the plant, which damaged its machinery.

“Normally, the steel plant procures coking coal raw material through international bidding like Steel Authority of India Limited proceedings. It is a genuine process, and the plant also gets quality material through this mode. But now, the plant procured substandard coking coal at high prices (more than 30 percent of the price finalised through the international bidding price) from bogus companies,” they alleged.

Despite warnings from the plant’s quality control unit and third party quality control, the plant management used substandard quality coking coal, they alleged.

“So, the plant management is responsible for procuring low-quality coal at high prices. There could be a scam in this process and the CBI should investigate this,” said Mr. Ganga Rao.