Prime Minister's statement on coal block allocation 'economical with the truth', alleges BJP

NEW DELHI: BJP has alleged that Prime Minister Manmohan Singh was "economical with the truth" in his statement in Parliament on allocation of coal blocks. The party, which has been demanding the prime minister's resignation, alleged his argument that states had opposed auctions was baseless and that his minister had indicated in 2007 that all objections to competitive bidding were untenable.

The party claimed that Chhattisgarh chief minister Raman Singh had not rejected the proposal for competitive bidding in 2005, but only suggested that revenue from coal be shared.

In his reply in the Lok Sabha in 2007, then minister of state for coal Dasari Narayan Rao had said that the Centre's view was that rational bidding was unlikely to increase cost of coal when compared to notified price of CIL. "Through competitive bidding, prerogative in the selection of a lessee will be exercised in a more transparent and objective manner," Rao had said. He also said there would be no bar on holding separate auction of coal blocks to different sectors as per the proposal under consideration, BJP said.

"This shows that the prime minister was economical with the truth in his statement in Parliament. His own minister is saying in 2007 that all objections against auctions are untenable and auction is the right way and competitive bidding will introduce transparency," BJP's chief spokesperson Ravi Shankar Prasad told reporters. He claimed the government put off the proposal of auctioning and putting the blame on states was misplaced. More so, when 145 blocks were hurriedly allotted in 2005, 2006 and 2007," Prasad said asking who was responsible for the delay in bringing the bill.

Citing Raman Singh's letter, he said it did not amount to resisting competitive bidding. The Chhattisgarh chief minister had written to the prime minister and Rao in 2005, saying a sudden change in coal blocks allotment policy would adversely affect ongoing steel, iron and captive power projects in the state at that time and suggested either allocating coal blocks to ongoing projects or adequately allocating coal blocks to state mining corporation, so that it could meet the demands of ongoing projects.

He had also proposed that if the government went in for competitive bidding then the revenue be shared between the concerned state government and central government. The prime minister had quoted the chief minister as requesting that any change in coal policy be made after arriving at a consensus between the central government and the states.