The Government today 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 newmen in New Delhi, 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. He said, the process is underway and the government has done all that needs to be done without going into merits of the CAG report. He also said the Prime Minister's Office has indicated that the government should have a final set of recommendations from IMG as early as possible.
Mr Chidambaram said, the non-functioning of Parliament is a political problem.
AIR correspondent reports the Interministerial Group that met today is again slated to meet on the 6th of this month.

Coal Minister Sri Prakash Jaiswal today ruled out further probe into coal blocks allocation. Talking to reporters outside Parliament, he said there was no need for any probe as the CBI and an inter-ministerial group are looking into the matter separately. He said the government will wait for the reports before taking any decision. The BJP meanwhile reiterated its demand for Prime Minister's resignation and cancellation of coal blocks allocation. Talking to reporters in New Delhi, BJP spokesman Syed Shahnawaz Hussain alleged that the government is not serious about smooth functioning of Parliament.
The CPIM has called for an enquiry into the allocations. Talking to reporters in New Delhi, Senior Party leader, Mr Sitaram Yechury demanded that the government should cancel the allocation to the private sector.