Responding to Prime Minister Manmohan Singh's charge that he opposed open bidding of coal blocks, Chhattisgarh chief minister Raman Singh said his government had only conveyed that a sudden change in the policy of allotment of coal blocks would have an adverse impact on the viability of the then ongoing steel, iron and captive power projects in Chhattisgarh.
“Therefore, our suggestion was either to allocate coal blocks to ongoing projects or to adequately allocate coal blocks to the state mining corporation to meet the demands of the existing or ongoing projects,” he said.
The CM said, "We had also suggested that if the government of India decides to hold competitive bidding for allocation of coal blocks, it would be in the fitness of the thing and fairness that the revenue to be generated through competitive bidding is shared between the concerned the state government and the Centre."
"The Centre conceded to our demands of 2005 and the policy clearly keeps provision for the same. Now, under the new policy, the state mining corporation would be given coal blocks without competitive bidding whereas; private companies would be allotted coal blocks through competitive bidding and the revenue generated in the competitive bidding should be given to state concerned," Singh added.
The CM released the suggestions given by him to the PM in his letter dated June 28, 2005 "to set the records straight."