Govt must ensure coal denationalisation works to make it a game changer

Regulations must be conducive for competitive and sustainable price discovery

The government’s decision to open up the coal sector to commercial mining by private entities is a long-awaited reform measure that is set to usher in competition in coal supply, reduce coal imports and help stressed power plants to attempt a turnaround through better fuel management. It also ends Coal India’s (CIL’s) monopoly after 45 years. The state-owned company and its affiliates account for almost 80 per cent of all the coal mined in the country and the balance is reserved for other entities, but only for captive use. However, there are many question marks over CIL’s efficiency in coal