The prime minister’s office (PMO) is seriously considering cancelling the 164 allocated coal blocks by Monday and file an affidavit before supreme court to this effect, it is learnt.

The Congress core committee is set to discuss the cancellation of coal blocks, according to top sources.

Plagued by a series of corruption scandals, none more than the coal block allocation scam with the prime minister’s office directly involved in it, the party, sources said, is desperate to distance itself from the coal allocation controversy and save the PMO from the crisis.

"The PMO has to be saved from coal blocks allocations (case)… especially prime minister Manmohan Singh,” a top source in the party said, explaining the substance of the government’s and the party’s line. According to insiders, the party feels the best way toward this is to cancel the 164 blocks already allocated, as it will not only reduce political impact on the PMO but also silence the opposition parties.

On Wednesday, the supreme court had pulled up the UPA government for not cooperating with the CBI in the coal blocks allocation scam. The apex court also directed the government to submit all documents relating to decisions taken by a screening committee which gave the go-ahead to the controversial allocations.

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According to sources, the PMO had been waiting for the apex court’s rulings to give a green signal to the convening of monsoon session of parliament. On Friday, the Congress core committee is expected to take a decision on the date to convene the monsoon session.

The PMO went into a huddle till the late Wednesday night, analysing the apex court’s observations on the Coalgate – about missing files, seeking the entire file notings and minutes of the screening committee’s meetings.

PMO insiders said oral observations of the apex court tantamount to the loss of investigating skills of the CBI; that the court passed a ‘no-confidence’ on CBI. The PMO, these insiders said, also expects that by cancelling the coal blocks it can escape the wrath of the apex court during the next hearing. 

Significantly, even senior officials were not granted appointment by the PMO on Wednesday afternoon as it was busy assessing the negative impact of on the coal block allocation front.