After sand, water and minerals, fly ash has allegedly emerged as another major avenue for corruption in Odisha. Serious allegations have surfaced regarding the management and transportation of ash generated at the Ib Thermal Power Station of Odisha Power Generation Corporation (OPGC) at Banharpali in Lakhanpur block of Jharsuguda district.
The expenditure on ash management at the power plant has reportedly increased sharply. During the current financial year, nearly Rs 300 crore has allegedly been earmarked for ash management and transportation. Allegations have been raised that a substantial portion of this expenditure could be lost through irregularities, inflated bills and questionable contracts.
Rs 150 Crore Allegedly Lost Every Year
It has been alleged that nearly Rs 150 crore could be siphoned off annually through irregularities in the ash transportation and billing system. Questions are now being raised about the financial future of OPGC, which reportedly earns annual profits of around Rs 500 crore, if such a large amount continues to be spent on ash management.
Allegations suggest that an alleged nexus involving officials, contractors, transporters and politically influential persons may be benefiting from the system. However, these allegations require an independent investigation and official verification.
Four Units Generate Massive Quantities of Ash
OPGC’s Ib Thermal Power Station has four generating units. The first phase consists of two units with a combined generation capacity of 420 MW. An ash pond was constructed in the Rengali area, around 6.5 km from the plant, to handle ash from these units.
Following the expansion of the plant, two new units with a combined capacity of 1,320 MW were commissioned. A separate ash pond was constructed at Tilia, around 13.5 km away. Ash was transported to the site through slurry pipelines.
Slurry Pipeline Yet to Be Repaired
According to the allegations, the slurry pipeline constructed earlier developed repeated leaks due to alleged engineering and construction shortcomings. Environmental concerns reportedly prompted regulatory intervention, following which the pipeline was stopped.
Instead of repairing and restoring the pipeline, ash was temporarily dumped in three old ponds created during the establishment of the earlier units.
In December 2023, one of the ash ponds reportedly breached after failing to handle the growing volume of ash, leading to ash entering nearby land and triggering strong resentment among local residents.
Despite these concerns, demands have been raised for the immediate repair of the pipeline leading to Tilia and for the construction of an additional ash pond near the existing facilities.
10,000 Tonnes of Ash Generated Every Day
The plant’s four units reportedly consume around 25,000 to 27,000 metric tonnes of coal daily. Nearly 40 per cent of this is said to turn into ash, resulting in the generation of approximately 10,000 to 11,000 tonnes of ash every day.
The ash is transported by rail and road to different locations and industries across the state and beyond. However, the transportation system has now come under serious scrutiny.
Allegations of Tender and Billing Manipulation
Questions have been raised over the manner in which contracts for ash transportation are awarded. It has been alleged that tender norms are being violated under political pressure or through the influence of corrupt officials.
Some transport contracts have reportedly been awarded at values significantly higher than the annual business turnover of the firms concerned, raising concerns about their financial and operational capacity.
There are also allegations of billing manipulation, with transporters allegedly carrying less ash while raising bills for larger quantities.
Ash Allegedly Dumped Before Reaching Destination
Another serious allegation is that trucks assigned to transport ash to distant locations allegedly dump it within or near Jharsuguda district instead of delivering it to the designated destinations.
Ash reportedly meant for places such as Koraput, Paradip and Jatni is alleged to be dumped at unauthorised locations, allowing transporters to reduce fuel and transportation costs while claiming full payment.
Such unauthorised dumping could cause environmental pollution and pose risks to public health, particularly for people living near ash dumping sites.
From Waste to a Valuable Commodity
Fly ash was once considered an unwanted industrial waste. However, with increasing restrictions on traditional clay bricks, fly ash has become an important raw material for brick manufacturing and construction.
This growing commercial value has made ash management and transportation a lucrative business. Allegations suggest that the sector has become an easy source of illegal profits for a section of officials, contractors, transporters and politically connected individuals.
Demand for High-Level Investigation
Despite repeated allegations of irregularities in ash transportation contracts and management, critics claim that no effective corrective action has been taken so far.
With concerns over financial losses, environmental pollution and alleged tender irregularities continuing to grow, there is now a strong demand for a high-level and independent investigation into OPGC’s ash management and transportation system.