FICCI recommends privatization of Coal India Limited

Kolkata : Industry body FICCI Wednesday called for privatisation of state-run Coal India Limited (CIL) and its “controlled” break up into several different entities for better availability of the fuel to the industry.

“The main problem associated with power is the fuel linkage, which is coal. In the coal sector, it happens to be a monopoly of the government of India. Our suggestion for the coal sector is it should be much more competitive. The Coal India should actually be privatised,” Federation of Indian Chambers of Commerce and Industry (FICCI) president R.V. Kanoria told reporters here.

“So we need to break Coal India from a single entity to a several different entities. It will bring competition in the coal sector and availability of coal will then improve,” Kanoria said.

He said a “graduated and controlled” break up of CIL would both create competition and ease of fiscal situation.

FICCI also urged the government to consider introduction of commercial mining with participation of private coal mining companies.