Coal block allotments: There's no merit in allegations made by CAG, says Sriprakash Jaiswal

NEW DELHI: The government hit back on the opposition parties saying they were avoiding a debate on the controversial audit report on coal block allotments in Parliament since they were involved in the allocations.

Coal minister Sriprakash Jaiswal said the government was making all efforts to persuade the Opposition for a joint debate in Parliament on the report of the Comptroller and Auditor General ( CAG) that alleged giving 1.86 lakh crore undue benefits to private companies through non-transparent allocation of 57 coal blocks.

Both Houses of Parliament were adjourned on Wednesday for the second consecutive day as the Opposition led by the Bharatiya Janata Party demanded resignation of Prime Minister Manmohan Singh, who held the coal portfolio for three years since 2004.

Jaiswal said there was a conspiracy to stall growth and tarnish image on honest politicians like Singh. The minister also said that the government would be highly cautious while making future allocations. "The Opposition knows that there is no merit in the allegations made by the CAG.

The coal blocks allocations questioned by CAG were made after five states, then ruled by the opposition parties, had opposed to competitive bidding. Moreover, the allocations were made after consultations with the all the state governments. The Prime Minister cannot be held responsible in any manner," Jaiswal told mediapersons here.

Jaiswal said bidding process for coal block allocation could not be implemented due to stiff opposition from five coal-rich states like Chhattisgarh, Rajasthan, Orissa and West Bengal that apprehended impact on coal prices.

He said the concept of allocation of captive coal blocks through competitive bidding was first mooted in 2004 by UPA-I. The government has appointed CRISIL as consulting agency for the bidding process.