Reassess commercial mining strengths and weaknesses, House panel tells CIL



Source: PTI

In the wake of government opening up the coal mining to the private sector companies for commercial use, a parliamentary panel on Tuesday said that state-owned CIL should review its areas of strength and weaknesses in order to remain competitive in the sector.

“Very recently a decision on opening up of commercial coal mining for private sector has been taken moving from an era of monopoly of Coal India Ltd to competition.

“In this background, the Committee desire the Coal India Ltd to reassess their areas of strength and weaknesses to stay competitive in the coal sector, particularly, when use of other eco-friendly energy options are being encouraged,” Standing Committee on Coal and Steel said in its latest report tabled in the Parliament on Tuesday.

In a major reform in the coal sector since its nationalisation in 1973, the government had last month allowed private companies to mine the fossil fuel for commercial use, ending the monopoly of state-owned Coal India Ltd (CIL).

“Regarding the efforts for increasing the production of coal , the Secretary, Coal during the oral evidence held on 22.2. 2018 stated that the government has decided to allow commercial mining by private players also. This will also result in rise in production of coal in the country,” the report further said.

The opening up of commercial coal mining for private sector is the most ambitious coal sector reform since the nationalisation of this sector, Coal and Railway Minister Piyush Goyal had earlier said.

Source: PTI