The Government has rejected BJP's demand for immediate cancellation of coal block allocations and appealed to the opposition to allow Parliament to function for a debate on the issue. Speaking to newsmen in New Delhi yesterday, Finance Minister P. Chidambaram said, the BJP's demand for cancellation of all 142 coal blocks allocated after 2004 is not founded on sound logic. Mr. Chidambaram said cancellation cannot be done through dictat or arbitrary orders, there is a fair procedure for it and that procedure is underway.

Mr. Chidambaram termed as outrageous, the BJP's demand for resignation of the Prime Minister. He also said, the BJP's demand for an inquiry is a little belated, as the CBI has already commenced probe. The Finance Minister said, an Inter-Ministerial Group (IMG) is going into the issue and a date of September 15 has been set for a decision. The Finance Minister said, the process is underway and the government has done all that needs to be done without going into merits of the CAG report.

Mr Chidambaram said, 30 coal blocks had already started production and 17 more are likely to begin the operations in the very near future.

BJP spokesman Syed Shahnawaz Hussain alleged that the government is not serious about smooth functioning of Parliament.

Talking to reporters in New Delhi, CPIM leader, Sitaram Yechury demanded that the government should cancel the allocation to the private sector.

The 4th meeting of the Inter Ministerial Group constituted for periodic review of coal blocks was held in New Delhi yesterday. The meeting deliberated upon the replies to show cause notices issued to coal block allottees on account of slippages in attainment of milestones for development of coal block and recommend action including deduction of bank guarantee.

According to an official release, the Ministerial group has fixed a schedule for meeting on 6th, 7th and 8th of this month, during which allottees will explain the reasons for missing their production deadlines and for delay in the development of mines.