<div>The Bharatiya Janata Party (BJP) on 22 August was left isolated on seeking Prime Minister Manmohan Singh's resignation over the coal block allocations. BJP ally JD(U) said that it wanted a discussion in Parliament on the CAG report even as Trinamool Congress (TMC) Mamata Banerjee turned down the request to join hands against the Prime Minister.<br /><br />A belligerent BJP derailed proceedings over coal block allocations in both Lok Sabha and Rajya Sabha. The BJP also derailed the question hour in both the Houses as it continued to press for the Prime Minister's resignation. <br /><br />The government on the other hand said that when it had suggested allocating mines through an auction, a series of states, some of them governed by the BJP, had objected, arguing that this would push coal prices up and adversely impact industrial development in their states. "Rajasthan, Chattisgarh, Jharkhand, Odisha, West Bengal... they all aggressively resisted a bidding process," said coal minister Sri Prakash Jaiswal. <br /><br />If coal is auctioned to get the maximum market price from power producers, then power producers will be able to recoup their cost from the consumers by hiking the prices steeply. Now question arises will the electricity regulatory authorities allow power producers to hike tariffs if the cost of fuel is high?<br /><br />Meanwhile, Firspost.com reported that CBI probe was likely to turn the heat on the chief ministers of three states which had recommended the allocation of coal blocks to private companies. Central and state government officials who let the allottees sublet the captive coal blocks have also come under scrutiny.<br />Three NDA chief ministers, including two from the BJP, are likely to be mentioned by the CBI for recommending the names of three private parties for the allocation of coal blocks.<br /><br />Coal Minister Sriprakash Jaiswal has repeatedly pointed out that three state governments – of Chhattisgarh, Rajasthan and West Bengal – had opposed the ‘competitive bid’ policy.<br /><strong><br />States Opposed Coal Block Bidding Idea: Jaiswal </strong><br />Coal minister Sriprakash Jaiswal said the bidding process for coal block allocation could not be implemented due to stringent opposition from five coal-rich states like Chhattisgarh, Jharkhand and West Bengal.<br /><br />Asserting that Prime Minister Manmohan Singh could not be held responsible in any manner on this issue, he said: "Five states -- Rajasthan, Chhattisgarh, Jharkhand, Odisha and West Bengal -- had strongly opposed to the idea introduction of coal block allocation through the bidding route".<br /><br />Though the concept of allocation of captive coal blocks through competitive bidding was first mooted in 2004, the modus operandi is yet to be finalised by the government.<br /><br />Government auditor CAG had earlier this week said private firms are likely to gain a whopping Rs 1.86 lakh crore from allocation of 57 coal blocks without competitive bidding between 2005 and 2009.<br /><br />"Delay in introduction of the process of competitive bidding has rendered the existing process beneficial to the private companies. Audit has estimated financial gains to the tune of Rs 1.86 lakh crore likely to accrue to private coal block allottees," the CAG report had said.<br /><br />The Comptroller and Auditor General (CAG) arrived at the estimates based on the average cost of production and average sale price of opencast mines of Coal India in 2010-11.<br /><br />Stating that the coal ministry tried but in vain to bring the erring states on board on the issue, Jaiswal said states had opposed the bidding idea as they apprehended this would impact industrial activity as coal would become costlier.<br /><br />Jaiswal criticised the Opposition for creating ruckus in the Parliament and said that given a chance, he would bring forth the real picture.<br /><br /><strong>BW Online </strong>had pointed out 17 August (<a href="http://www.businessworld.in/en/storypage/-/bw/coal-of-the-wild/480240.37506/page/0"><strong>Coal of The Wild</strong></a>), the day CAG filed the report in Parliament that the UPA government had not caused a loss of Rs 1.86 lakh crore by allocating coal blocks. If there is a whiff of corruption, the blocks can be cancelled. The coal is still in them. And if there is corruption, then chief ministers of states that recommended the allocations are also likely to be implicated.<br /><br />The law ministry had advised the government that amending the Mines and Minerals (Development and Regulation) Act or rules under the law will place the process of competitive bidding for coal blocks at a higher legal footing.<br /><br />This was in response to the decision at a meeting convened by the Prime Minister's office in the first half of 2006 in which it was felt that the MMDR Act should be amended as this would cover all minerals, not just coal. <br /><br />(With input from Agencies)<br /> </div>