Coalgate: PM should be accused no. 1, says former coal secy

Parekh further said, "The allegation is that Talibara 2 block has been allotted to a private company, Hindalco and therefore there is an undue benefit to a private company. The case was for this block there were two applicants. One was Hindalco, which was the first applicant and the second was Neyveli Lignite Corporation. Both of them were equally competent and fulfilled all criteria which are required for allocation of the coal block."

"In the screening committee we took the decision that since Neyveli is a government company, is a Public Sector company, we should give preference to Neyveli Lignite Corporation. At that point of time Mr Birla made a representation to PM, saying that we made the first application for this block, we are equally eligible and competent for allocation of this block. He said that their request had been unfairly rejected and should be reconsidered. Mr Birla also met me and made a similar representation, I examined the issue and therefore made a proposal that along with Neyveli, Hindalco should also be included in this block. Both of them were advised to form a Joint Venture," added Parekh.