By IANS,
Chennai: Tamil Nadu’s Leader of Opposition and former chief minister J. Jayalalithaa Tuesday demanded a central probe into the alleged diversion of potash meant for farmers to two chemical industrial units for manufacturing fireworks.
In a letter to Prime Minister Manmohan Singh, the AIADMK leader accused the two Karaikal-based companies – Vaigai Chemical Industries and Karaikal Chlorates – of diverting potash worth Rs.4,000 crore to make fireworks and safety matches.
“It is essential that the Central Bureau of Investigation (CBI) should probe the matter to unravel the truth,” Jayalalithaa said in the the letter, a copy of which was made available to the media.
Indian Potash Ltd imports 40,000 tonnes of the chemical per month from Russia and Israel at Rs.15,000 per tonne and distributes it among farmers at a concessional rate of Rs.5,000 per tonne.
The same product is also being used to make potassium chlorate, an essential commodity for making explosives and fireworks.
Jayalalithaa said both Vaigai Chemical and Karaikal Chlorates “have been possessing stocks far beyond their production capacity. This has led to a suspicion vis-a-vis the source of supply of potash to these industries.”
“It has been brought to my notice that Vaigai Chemical is producing 40 tonnes of potassium chlorate per day, though its installed capacity is nine tonnes. Karaikal Chlorates is producing 60 tonnes of potassium chlorate per day as against its permitted quantity of 16 tonnes.”
Puducherry agriculture and revenue officials have seized 2,000 tonnes of potash from the factories of these two companies after conducting a raid recently, she added.
These factories were sealed by officials and a first information report has also been filed.
However, Vaigai Chemicals denied the allegations, attributing them to business rivalry.
“Our production capacity is nine tonnes per day and we do not exceed the same. We also buy potassium chlorate from registered dealers after due declaration to the appropriate authorities,” M.S. Saravanan, vice-president of Vaigai Chemicals told IANS.
He said one of its business rivals was raising false allegations against the firm and the authorities raided the factory because of such charges.
“The raw materials seized from our factory have to be tested and the result given within a week. The factory can be sealed only after giving due notice. The government has not given us any test results till date,” Saravanan pointed out.