Resignation Row: Coal India CMD Pramod Agrawal Steps Down Over Alleged Corruption

Former Coal India CMD Pramod Agrawal Resigns

Former Coal India CMD Pramod Agrawal has resigned from his post, citing personal reasons. Sources revealed that his resignation was prompted by an ongoing investigation by the Central Bureau of Investigation (CBI) into allegations of corruption and irregularities in the allotment of coal mining contracts during his tenure.

The CBI had launched a preliminary inquiry into the allegations against Agrawal and other officials of Coal India, India's largest coal producer, in September 2022.

CBI Investigation: Allegations of Corruption, Irregularities

The allegations stem from the allotment of coal mining contracts to private companies in the financial years 2021-2022 and 2022-2023. The CBI suspects that certain companies were favored in the allocation process, leading to potential irregularities and financial losses to Coal India.

Past Controversies at Coal India

Coal India has been plagued by allegations of corruption and financial irregularities in the past too. In 2020, the CBI arrested several senior executives of Coal India in connection with coal block allocation scams during the previous Congress-led government.

The former coal secretary, H.C. Gupta, and former coal controller, K.S. Kropha, were also arrested in the case. They were accused of illegally allocating coal blocks to private companies, causing huge losses to the exchequer.

BSE Reacts to Resignation: Stock Falls

The Bombay Stock Exchange (BSE) reacted negatively to the news of Agrawal's resignation. The share price of Coal India fell by over 3% in early trading after the announcement was made.

The investor community's negative reaction highlights concerns over the company's future prospects and the uncertainty surrounding the ongoing CBI investigation.

Speculation and Questions over Leadership

Agrawal's resignation has triggered speculation and questions about who will succeed him as Coal India's CMD. The government is expected to announce the new appointment soon.

The selection of a new CMD will be crucial, as Coal India is a key player in the country's energy sector and its performance has a direct impact on the economy.