No rift between coal secretary, inter-ministerial panel: Chidambaram

Finance Minister P. Chidambaram on Monday rubbished reports of rift between the coal secretary and the inter-ministerial group that has recommended that 30 blocks given to the private sector and another 28 given to state-run companies deserve to lose their licences for non-performance.

"I have spoken to the coal secretary. There are no differences within the bureaucracy. What the coal secretary told IMG (inter-ministerial group) was that the process to de-allocate coal blocks must be fair. If process is not fair then it can be challenged later,” Mr. Chidambaram said.

The panel, in its recommendation, had stated that these fields were unlikely to produce any coal by March 2013, and should therefore be handed over to the state-run Coal India.

Earlier in the day, the government rejected the Bharatiya janata Party’s demand for immediate cancellation of as many as 142 coal block allocations, but appealed to the Opposition to allow Parliament to function and participate in a debate on the issue.

"The demand for cancellation of all 142 coal blocks allocated after 2004 is not founded on sound logic... It (cancellation) cannot be done through dictat or arbitrary orders," he told reporters.

"There is a procedure for it and that procedure is underway," he said.

Chidambaram also termed as "outrageous" the BJP's demand for resignation of Prime Minister Manmohan Singh. The BJP's demand for an inquiry is "a little belated" because CBI has already commenced probe, he said.

Explaining the government's position behind not accepting the demand for cancellation of coal blocks, he said the inter-ministerial group was looking into the issue and a date of September 15 has been set for a decision.