New Delhi: Cancellation of current coal block allocations will hit the business sentiment, particularly in sectors like power which are reeling under fuel supply shortage, industry body CII said on Wednesday.
"Cancellation of the current coal block allocations may not be the right step as it will negatively impact business sentiments, particularly in sectors like the power which are already hard hit by the lack of coal supplies," CII President Adi Godrej said in a statement.
"Transparent fixing of eligibility criteria that is non-discriminatory and with an aim to promote sustainable mining is the need of the day in allocation of mineral resources," he added.
CAG's findings that allocation of 57 coal blocks resulted in a loss of Rs 1.86 lakh crore to the exchequer evoked sharp reaction from the government. Parliament has also seen turbulence over the report.
The BJP has demanded for cancellation of the 142 coal blocks allocated during UPA rule has and asked the government to clarify whether any "comparative appraisal" of applicants was done and what was the criteria for making these allotments.
PTI
