The Government on Sunday said that allocation of coal blocks was never considered as a potential source for generating revenue for the Central Government. Blocks were allocated to promote development of infrastructure.

“Hence, the question of maximising revenue does not arise at all. The idea of introduction of bidding cropped up only in the wake of increasing demand for captive coal blocks and the consequent necessity of putting in place a process which is demonstrably more transparent,” the Ministry of Coal said in a statement.

The Ministry issued the statement to clarify doubts that have been raised regarding allocation of coal blocks to private companies for captive use during 2004-2009. Allocation of coal blocks to private companies for captive use started in 1993. Initially, the applicants themselves identified the blocks and sought allocation. Later, it came to limelight that Coal India Ltd alone would not be able to meet the growing demand. Therefore, blocks were allotted to private players.

The Ministry said that coal blocks for captive end use were allotted on the basis of recommendations of a ‘Screening Committee' which followed fair and transparent procedure giving equal opportunity to all applicants. The parameters and the guidelines for allocation were duly notified and followed by the committee while evaluating the applications. Comprehensive details about the applicant and the group, performance of the group, financial strength and readiness of the end-use plant were reviewed before making the allocation. “The process of allocation of blocks was equitable, fair and just which is borne out of the fact that there has never been any serious allegation against the working of the screening committee. The move to introduce competitive bidding is to make the selection process demonstrably more transparent,” said the Ministry of Coal.

> siddhartha.s@thehindu.co.in

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