Welcoming the government's coal sector reforms, industry chamber Ficci today said the initiatives must provide a level playing field to both public and private sector companies.
The Cabinet had yesterday recommended promulgation of an Ordinance to facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs.
"This is an important decision and highlights the Government's seriousness to reform the coal sector. The Ordinance will address the future of cancelled blocks and ensure that the already producing blocks are brought back on track. Through this move, the government has arrested concerns pertaining to diminishing coal supplies," FICCI President Sidharth Birla said in a statement.
"It is also necessary that the route followed must provide a level playing field for both public and private sector including on terms and pricing," Birla said.
While the Ordinance is an immediate measure to address the current "impasse", Birla applauded the government's intent to move ahead with market-based reforms paving way for "advent of commercial mining in coal sector".
The government's announcements yesterday came against the backdrop of the Supreme Court last month quashing allocation of 214 coal blocks to various companies since 1993.
