Ministry may not review allotted coal blocks

The coal ministry is unlikely to "review" blocks allotted last year to 31 power companies in the wake of allegations of irregularities in the allocations.

The allocations are finalised by a screening committee, which is headed by the coal secretary and has about 20-odd members. These include representatives of various user industries like power, steel and cement as well as officials of state governments where the projects are located.

"The decision of the screening committee was unanimous. We have followed a well laid out process for the allocation. There was no dissenting voice," said  a senior official of the ministry of coal. Since the Prime Minister is also the coal minister, a report has also been forwarded to the PMO, sources added.

The reason for the confusion seems to be a short-list of companies eligible for coal blocks drawn up by the power ministry prior to the meeting of the screening committee. "It is for the first time that such a short list had been prepared. The ministry used its own yardsticks," said the official.

Since there are many stakeholders in coal blocks, especially the increasingly belligerant state governments, the final list of allottees was different from the power ministry's list. They have now raised objections "but they did not object at the screening committee meet. They have even signed on the minutes of the meeting," the official added.

A review, or revocation, of allotment could lead to legal tangles since some allottees have already purchased land.