Coal India can use private agencies to mine new fields: Rangarajan

Kolkata, Nov 24 (IANS) The chairman of Prime Minister’s Economic Advisory Council, C. Rangarajan, Saturday said the state−run Coal India could use private agencies to open up new coal fields.

“Anything that requires legislative approval (to end CIL’s monopoly) is going to be tough and consensus is required for it. One reform that is being talked about is for Coal India and its subsidiaries which can use private sector as an agent and open up new fields so that they supply coal to Coal India at some agreed price,” Ragarajan said during an interactive session, organised by MCC Chamber of Commerce & Industry here.

Industry lobbies like FICCI have been demanding that the government should take steps to end monopoly of Coal India Ltd. (CIL) and allow private players in coal mining to accelerate exploration.

Earlier this month, FICCI called for privatisation of state−run Coal India Ltd. and its “controlled” break up into several different entities for better availability of the fuel to the industry.

“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 had said.

IANS 2012-11-24 19:40:05