The PMO has defended coal block allocation made to Hndalco terming it as entirely appropriate. In a statement today, it said the decision was based on the merits of the case placed before him by the coal ministry with a strong recommendation of the Odisha Government.

Tracing the procedures followed before the allocation was made, it said the Prime Minister was satisfied over the final decision taken in the case.

The statement said the allocation is subjected to an on going investigation and no impediments is placed before the CBI to continue the investogation and seek fresh information, which may have a bearing in the case.

The statement said the investigation and other matters must take their normal course under the law.