Allegations of illegal mining false, says Prakash Inds

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Allegations of illegal mining false, says Prakash Inds

There have been allegations of illegal mining against Prakash Industries. In an interview with CNBC-TV18's managing editor Udayan Mukherjee, VP Agarwal, CMD, Prakash Industries, speaks about the latest happenings in his company and sector.

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There have been allegations of illegal mining against Prakash Industries . In an interview with CNBC-TV18's managing editor Udayan Mukherjee, VP Agarwal, CMD, Prakash Industries, speaks about the latest happenings in his company and sector.

Here is a verbatim transcript of the exclusive interview on CNBC-TV18. Also watch the accompanying video.

Q: There have been allegations of illegal mining against your company, can you tell us what exactly is going on there?

A: They have been all false allegations and there has been no illegal mining done by the company at its coal mine at Chotia or anywhere else. Further the company has never indulged into selling of coal from its mines. Also, whatever coal has been extracted has been utilised for its own steel plant and power plant at Chhattisgarh.

Q: Are those reports false then that the CBI is probing charges of black marketing from your Chhattisgarh mines? Has there been no interaction with the CBI at all?

A: Absolutely all these talks are false. There has been some inquiries from different government departments and we have been to their satisfaction been clarifying. Even the coal ministry through their office of coal controller had got all the production and consumption, all got checked up and everything has got year to year verified.

Q: So right now mining operations continue unaffected at Chotia at the mines?

A: Yes, for last four years the mining operations have been going on. These mines were open after all the government approvals and all the mining plans having been approved. Therefore, the mining has been happening at around 1 million tonne and this year also our target is that one million should be the production.

Q: Apparently you were going to bag clearances for captive iron ore mines leading upto 100% integration in FY12, any delays on that or have those deals happened?

A: We have got more coal mines from Government of India for our expansion programmes. We are working on them and soon more coal mines will get operated.

Q: What is the current status of your merchant power plant of 625 MW over the next five years? Is phase I coming up this year or next year?

A; The power plant progress is going on. It is likely that as per our original plan, we should be able to complete these projects. In the next three-four years, we should be able to complete these projects. We have already spent about Rs 700 crore on these projects. The total outlay on steel and power both including are about Rs 3000 crore which we will be completing in the next four years.

Q: On one of the coal blocks in Madanpur apparently there was an environmental clearance issue, has that been sorted out?

A: Madanpur is recent go, no-go concept. The Madanpur coal block, which was allotted to us together with seven-eight more parties in a JV, the progress although was done well, but recently that has been considered a no-go area. The government is actively looking into it and hopefully a solution would be found out.