Open up coal sector: Montek

Planning commission Deputy Chairman Montek Singh Ahluwalia today called for aligning domestic coal prices with international rates and ending Coal India Ltd8217;s allocation monopoly.

The PSU must change from being an 8216;8216;allocater of coal to a marketer,8217;8217; Ahluwalia told a conference today. While acknowledging the coal ministry8217;s decision to adopt a new pricing regime based on the gross calorific value of coal rather than useful heat content 8212;8212; a nearly 40 year-old policy 8212;8212; he said it was time to do away with the nationalised structure where CIL enjoys a virtual monopoly.

8216;8216;Like petroleum, coal is also a scarce resource. This sector has also to be opened up for all,8217;8217; he said. 8216;8216;I know domestic players may not be happy with the end of protection, but there is no rationale in continuing with it,8217;8217; he said. Referring to the delay in introducing the amendment to the Coal Nationalisation Act, Ahluwalia acknowledged there was no political consensus on the issue. But as the petroleum sector as opened up to private investors, the same rationale should be applied to coal, he said.