Prime Minister Manmohan Singh finally broke his silence on the coal allocation controversy on Monday, and took full responsibility for decisions taken by the coal ministry.

Mr. Singh took full responsibility for decisions taken by the coal ministry, but rubbished the Comptroller & Auditor General’s report about alleged coal allocation scandal, described the figure as “misleading”.

He defended his government and the ministry, saying any allegations of impropriety were basis-less and unsupported by facts, and added that the observations of the CAG were obviously disputable.

In its report, the Auditor alleged that the government allotted blocks with nearly 44 billion tonnes of coal to private companies at throwaway prices, and that 194 of the total coal block allotments were made on just recommendations. It estimated that the taxpayers lost 1.86 lakh crore due to the coal block allotments, and added that competitive bidding would have prevented the loss.

But, Mr. Singh argued, “The CAG says that competitive bidding could have been introduced in 2006 by amending the existing administrative instructions. The premise of the CAG is flawed.”

Mr. Singh’s statement, which he read out in both houses, could not produce the desired political impact. The Opposition led by BJP is still aggressively demanding resignation of the prime minister, alleging he is legally responsible for the massive loss to the taxpayers as he held the coal portfolio at the time of the allotments of the coal blocks.