July 6, 2012. The coal ministry has threatened to cancel allocation of coal blocks of power companies that are selling power in the short-term market at lucrative rates. The ministry has also asked them to enter into power purchase agreements (PPAs) on the basis of competitive bidding. The ministry has been charged with handing over coal blocks worth ' 10.7 lakh crore to various companies, according to a draft CAG report. Coal minister Sriprakash Jaiswal has defended the allocation saying that if the blocks had been auctioned, the consumers would have paid a heavy price for power and steel. The coal ministry's latest directive would specifically impact independent power producers and companies with captive units and is aimed at giving benefits to consumers through lower tariffs.