The Prime Minister's Office has defended coal block allocation made to Hindalco terming it as entirely appropriate. Rejecting any wrong doing, the PMO said in a statement today, that the decision was based on the merits of the case placed before him by the coal ministry with a strong recommendation of the Odisha Government for allocation of Talbira – II coal block to Hindalco to generate employment.

As the concurrence of both the state and central government is needed for allocation under the Act, the recommendation of the Odisha government could not be ignored.

The statement asserted that the allocation to a joint venture, including Hindalco, was not done at the cost of PSU Neyveli Lignite Corporation. The PMO acknowledged that the final decision on the allocation differed from the earlier recommendation of the Screening Committee.

This was done following a representation received in the Prime Minister's Office from one of the parties, which was referred to the Ministry of Coal. Releasing the sequence of details leading to his approval on October 1,2005 and the statement said, the Coal Ministry's recommendation was also supported by the screening committee.

Tracing the procedures followed before the allocation was made, it said the Prime Minister was satisfied over the final decision taken in the case.

The statement said the allocation is subjected to an on going investigation and no impediments is placed before the CBI to continue the investigation and seek fresh information, which may have a bearing in the case. The statement said the investigation and other matters must take their normal course under the law.

The allocation of Talabira coal block in Odisha is in the eye of a storm with CBI booking Aditya Birla Group Chairman
Kumar Mangalam Birla and former Coal Secretary P C Parakh.