Allegations of impropriety in coal block allocation baseless: PM

Prime minister Manmohan Singh today said allegations of impropriety in coal block allocations were baseless and unsupported by facts and called the CAG observations as clearly "disputable." He said, "I wish to say that any allegations of impropriety are without basis."

Addressing both houses of the parliament today, Singh said that the the allegations of impropriety in coal block allocation were without basis and unsupported by facts.

He said, "The observations of the CAG are 'clearly disputable", adding, "I want to assure honourable members that as the minister in charge, I take full responsibility for the decisions of the Ministry," he added.

"The CAG says that bidding could have begun in 2006 by amending the existing system administratively. This premise of the CAG is flawed. There were no allegations of impropriety in the functioning of the Screening Committee," he said.

Singh pointed out that the policy of coal block allocation existed since 1993 and previous governments also allocated blocks in precisely the manner that the CAG had now criticised. "It is difficult to accept the notion that a decision of the Government for legislative change in policy should come for adverse audit scrutiny," Singh added.

He said his government, for the first time, conceived the idea of making allocations through the competitive bidding route in June 2004.

Though he sought to make a statement in the Lok Sabha on the controversial coal block allocation his voice was drowned out in the din created by members of the Bharatiya Janata Party demanding his resignation. The prime minister then tabled his speech in the house.

The house was later ordered adjourned till 2 pm.

(See: Full text of the PM's 32 point statement in the house)