Govt unlikely to cancel 142 coal blocks immediately: PM

With the continuing logjam in parliament and BJP's apparent climb down, Prime Minister Manmohan Singh has made it clear that no immediate cancellation of the coal block allocations will be made till the inter-ministerial group submits its report on the issue. The PM also pointed out that he is ready to fight with the opposition on the issue, mean while appealed to them to allow Parliament to function.

The centre has taken this stand to avoid sending the wrong signal internationally, as it would scare away investors who would perceive India as an unreliable destination. At the same time it would open the government to litigation since many of the genuine allottees would be well within their rights to go to courts for relief in the event if the cancellations were made without proper review and investigation.

The Inter-Ministerial Group (IMG) has already been in touch with many of the allottees and had sent them show cause notices in April itself when the Comptroller and Auditor General draft report was ready and government knew that the trouble was brewing. All the coal blocks given from 2004 to 2009 were reviewed and 58 were given show cause notices and they are being reviewed now. However, 26 blocks were de-allocated in 2010 itself.