Coal block allocation was fair and transparent: Coal Ministry

Statement comes in the wake of the CAG estimating a Rs 10.6 lakh cr loss to the exchequer

Amid allegations of favouritism in allotment of captive coal blocks, the Coal Ministry today said fair and transparent procedure was followed while allocating mines between 1993-2009.

"Fair and transparent procedure was followed (in allocation of coal blocks between 1993-2009) which was devoid of any bias," Coal Ministry said on its website.    

The statement comes in the wake of the Comptroller and Auditor General (CAG) estimating a Rs 10.6 lakh crore loss to the exchequer on account of allotment of coal blocks without auction to companies.

The ministry also said that as the demand for coal grew, it was felt that Coal India alone would not be able to meet it. As a result, "the option of giving a bigger role to the private sector was explored," it said.    

"It is in this background...Why different governments during the period 1993-2009 allocated coal blocks to private parties for captive purposes.   

 

However, no coal block was allocated to a private company without the recommendation of the state governments concerned," it added.    
The coal ministry further added that if mines were not allocated by it, it would have caused higher imports of coal, resulting in outflow of foreign exchange or no large investments in the sectors like power, steel and cement.

The coal reserves were given through a Screening Committee that consisted of representatives from state governments, concerned ministries (Centre) and coal firms.

"The coal blocks used to be advertised calling for the applications form interested parties," it said.