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Web Exclusive | July 2013

Experts want govt to create competition by amending act

Experts feel that unless the Coal Nationalisation Act is amended to allow mining by private companies, the government cannot create competition in the coal sector.

The union cabinet recently approved the coal regulatory authority bill which envisages that the regulator would create regulations that bring in a level-playing field and more competition in the sector.

But it is not enough just to create a regulator as unless the Coal Nationalisation Act is amended it is not possible to create competition.

Till the time the act is amended, experts suggest that the government must break Coal India (CIL) into many companies, and ask the proposed regulator to ensure fair and healthy competition between these companies.

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