News Brief | September 2012
Govt to de-allocate idling coal blocks
Prime Minister Manmohan Singh informed that his government
initiated action to cancel the coal block allocations of allottees who
did not take adequate follow-up action to commence production.
said this in a statement at both the houses of Parliament. Singh's
rebuttal came in the wake of the Government auditor CAG computing that
private firms gained a whopping Rs 1.86 lakh crore undue benefit from
allocation of 57 coal blocks without competitive bidding between 2005
Contending that CAG's observations were "clearly
disputable", he stressed that the CBI was also "separately
investigating" the allegation of malpractices on the basis of which due
action will be taken against wrongdoers, if any.
had earlier said that of the 57 blocks allocated, 20 fall in no go areas
and only one was operational out of the remaining 37. The CAG, in its
report tabled in Parliament on 17 August, named 25 companies including
Reliance Power, Essar Power, Hindalco, Tata Steel, Tata Power and Jindal
Steel and Power who had got the blocks in various states.