In a letter to the PM, copies of which were released to the press here, Das alleged that Patnaik had favoured a few Indian steel manufacturers, ignoring the referral price of the HRSC recommended by the inter-ministerial committee. Das alleged that Patnaik had embroiled in a scam involving Rs 5,000 crore by favouring the Indian steel manufacturers and had allegedly taken a kickback of Rs 100 crore.

He said the inter-ministerial committee had fixed the referral price of HRSC at Rs 9,800 per tonne to protect the Indian manufacturers dumping the HRSC, but Patnaik had fixed a floor price for HRSC at Rs 12,480.00 per tonne without any consideration.

Das said since the floor price was the price invoice below which the imports were prohibited the import price was raisedby 57 dollar per tonne over and above the referral price. He further said by fixing the floor price at a higher side, the Steel and Mines Ministry had cleared the deck for the Indian manufacturers to enhance their price.

Since December 1998 the prices of HRSC had gone up by about one hundred dollar and approximately Rs 4 thousand per tonne, Das said, adding that the Indian manufacturers had by now minted Rs 5,000 crore from their HRSC business.