PM ready with 6-point reply to CAG charge

In the light of the main Opposition BJP’s scathing attack on his government, Prime Minister Manmohan Singh is all geared up to counter the charges by contending that there were 'inaccuracies' in the 'misleading' CAG assessment of loss of Rs1.85 lakh crores in the coal block allocations.

Sources informed that the Prime Minister has prepared a six-point response, but he could not present them in Parliament due to the stalemate caused by the Opposition.

Dr Singh will be underlining that the coal blocks were allocated in a transparent and appropriate manner through checks and balances without any favour to any company.

The thrust of the Prime Minister’s response is that Chhattisgarh, West Bengal, Rajasthan, Orissa and Jharkhand, all ruled by non-UPA governments, had opposed in 2005 the Centre’s move to bring a legislation on the auction process, sources said.

The Prime Minister holds that the Opposition by these states is responsible for the delay in introduction of a competitive bidding for allocation of coal blocks, sources said, adding that the law for auction bidding is now in place.

Contesting the CAG’s contention that private firms gained around Rs1.85 lakh crores in coal block allocation between 2005 and 2009, Dr Singh’s assertion is that it reflects “inaccuracies” in the report.

The Prime Minister’s point is that the CAG has computed on the basis of allocation of 57 mines but out of these, 31 coal blocks belong to the period prior to 2006. He also has objection to the CAG questioning the policy decision of the government by making reference to law ministry opinion that the option to be chosen between the alternative and legislative change and administrative instruction for introducing competitive bidding was a policy decision to be taken by the ministry.

With regard to the allegation about delay in making auction bidding a law, Dr Singh’s assertion is that even normal legislative enactments take considerable time, not only because of the procedures involved but also in view of the various consultations required to be held in order to arrive at a decision in a consensual manner, the sources said.

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