March 3, 2010 7:51 PM

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Centre rejects Gujarat demand for aborting auctioning of ignite blocks

The Centre has rejected the Gujarat government's demand for aborting the proposed auctioning of lignite blocks for captive use.<br/><br/>In response to a letter by Gujarat Chief Minister Narendra Modi, Coal Minister Sriprakash Jaiswal said the proposed auctioning system would bring in transparency in the system and make the allocation process objective.<br/><br/>Mr Jaiswal in his letter said there is no provision to keep the lignite blocks out of the purview of competitive bidding. The Coal Ministry also declined a proposal from Gujarat to give special dispensation to the state in allotting lignite blocks.<br/>

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