In a statement, the Left party said such policies will also compromise the safety of workers, and demanded that the government rescind its decision.
"This is part of the aggressive pursuit of neo-liberal economic policies by the Narendra Modi government. This decision of the Modi government to privatise the coal mining sector while undermining the energy security of the country will compromise with the safety and security of workers engaged in coal mines.
The party has called upon all democratic sections of the people to oppose this move.
The government yesterday approved opening up of coal mining to the private sector for commercial use, a major reform in the sector since its nationalisation in 1973.
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