M A I N   N E W S

Oppn’s demand unjust, won’t cancel allocation of coal blocks: Jaiswal
Anita Katyal/TNS

New Delhi, August 30
While the BJP is pressing for the cancellation of all the coal blocks allocated by the UPA government, Coal Minister Sriprakash Jaiswal today rejected the Opposition demand on the plea that it is untenable.

"There is no question of mass cancellations... this is incorrect," he told The Tribune amidst reports that the government is considering cancellation of the controversial coal block allocations to buy peace with the Opposition. An unrelenting BJP has said it will not allow Parliament to function until Prime Minister Manmohan Singh tenders his resignation on the coal issue and the government cancels the allocations.

Although the government has rejected both these demands, there is also a distinct possibility that a number of coal blocks allocated to private companies could be cancelled in the coming days following enquiries by the CBI. Jaiswal said the 57 allocations made to private companies, which were scrutinised by the CAG in its latest report, are being probed by the premier investigative agency. An inter-ministerial group, slated to meet next on September 3, is simultaneously reviewing these cases.

Jaiswal said of these 57 coal block allocations, 14 failed to get the requisite environmental clearances as these were located in the “no-go” forest areas. Their owners have been given six months to make fresh applications as the longstanding battle between the environment and coal ministries over “go and no-go” areas has since been resolved. “It is entirely possible that these could be allotted to them again,” Jaiswal stated.

It was explained that the Coal Ministry conducts periodic reviews to monitor if companies are meeting their contractual obligations and in case they fail to do so, the blocks are deallocated. Jaiswal said a total of 26 blocks have been deallocated since 1993. “These deallocations are nothing to do with the present policy...this is an ongoing process,” Law Minister Salman Khurshid added.

While the BJP has succeeded in disrupting Parliament on the coal issue for the past nine days, the Congress is drawing satisfaction from the fact that its allies have not deserted it in this hour of crisis. In fact, it is looking optimistically at the Samajwadi Party’s initiative in joining the Left parties and the TDP in demanding a Parliamentary debate on CAG’s report on coal block allocations. Congress strategists believe such a move will put pressure on an isolated BJP to end the impasse and participate in a debate being offered by the government.

A minor twist

• There is distinct possibility that a number of coal blocks allocated to private companies could be cancelled in the coming days following enquiries by the CBI
• Jaiswal said the 57 allocations made to private companies, which were scrutinised by the CAG in its latest report, are being probed by the CBI
• An inter-ministerial group, slated to meet next on September 3, is simultaneously reviewing these cases