Coal is India’s most important source of energy and is at the heart of the government’s plan to ensure every home has access to electricity.
More than 40 years ago, coal mining was nationalised, with the result that India is the third highest importer of coal despite sitting on the fifth highest coal reserves in the world.
Vajpayee's government introduced legislation in April 2000 to denationalise coal mining but 14 years later it still has not been passed.
As concerns grow about the rising number of India’s coal plants sitting idle, calls for denationalisation are becoming louder, as private companies seek the same privileges for the coal sector as granted to oil and gas.
The Times of India claimed that the newly appointed government should put public sector companies up for major disinvestment through transfers of controlling stakes in order to put more money towards education and health care.
“It allows for transfer of resources from areas such as airlines and steel plants – where private companies are competitive and do the job anyway – to activities that improve the productive capabilities of Indians,” it said.