Wednesday 9 January 2013

Coal sector ....

Coal should be denationalized...?

To boost the Indian economy Deputy chairperson of planning committee Montek Singh Ahluwalia have argued to Denationalize Coal sector of India as the country's growth has dipped below 6%. Since 1973 the government has only allowed minor participation in coal sector. Over 95% of coal mines are still with coal India or its subsidiaries. "Coal India's monopolistic  position has not helped" Ahluwalia said on Thursday.

The plan panel has said that 23,000 MW of power capacity added in the 11th Five-Year Plan cannot be utilized due to the absence of coal linkages. There is a 122 million-tonne gap between the demand and supply factors of Coal India.I strongly support the move to denationalize coal mining in India because the move will usher in competition (even from the global front), bringing about utilization of state-of-the-art mining technology,” said Arvind Mahajan, partner and head of energy-infrastructure at advisory firm KPMG India.    

Liberalization, Privatization and Globalization (LPG) have become dominant forces shaping societies and economies the world over. These three processes are interrelated. Globalized economies are likely to be more privatized and liberalized economies. Rapid growth and poverty reduction in China, India, and other countries that were poor 20 years ago, has been a positive aspect of Liberalization Privatization and Globalization (LPG).

Since 1991 LPG (liberalization, privatization, Globalization) has came into existence approximately every company is privately own and managed. only railway, postal service and coal sector is remaining in hands of government. It's a truth that privatization has really helped to increase the quality in service. Before this even umbrella cloth is under the control of government. Railway is the only sector which is owned by public sector. The fare what we paid for rail travel is still less compare to other way of transport. Same with postal service you have to less for posting compare to other medium. Privatization has really helped India to increase the standard of living but here you can get good service with quality.The best example is Telecom company today we have lots of telecom service provider in spite of the monopoly of MTNL. Privatization also helps to cut down the monopoly in market. The current issue is price increase in LPG. In this case if they are totally handover to private sector the service we get will become good but in more prices. Same with the coal sector coal is the primary source of producing electricity and if this will hand over to private sector then the hike in price of electricity unexpected.     

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