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Opening coal sector for private companies may boost FDI

<p>In a major reform in the coal sector since its nationalisation in 1973, the government allowed private companies to mine the fossil fuel for commercial use, ending the monopoly of state-owned Coal India Ltd (CIL). The opening up of commercial coal mining for private sector is the most ambitious coal sector reform since the nationalisation of this sector, the government stated.</p> <p>Opening the coal sector to commercial mining was a welcome step that would accelerate adoption of technology, productivity and competitiveness into the coal sector. However, the success, will depend upon the size of blocks identified, flexibility of sales, distribution and pricing and the consistency of regulations over a long period. The coking coal segment should receive some urgent attention to reduce import dependency.</p>