NITI Aayog—the principal think-tank of the Government of India—has said in its new draft Energy Policy that the state-run miner, Coal India Limited (CIL), should be stopped from functioning as a single entity, and instead its seven subsidiaries be split into independent entities, and be allowed to compete against each other to encourage competitive pricing.
In its draft policy, the think-tank also said that fresh coal production should come from private sector mines, adding that this move will call for reforms in allocating coal blocks to independent companies, specialized in coal mining.
Cautioning against CIL’s lofty production targets, NITI Aayog said that the state-run miner should rein in its production target by aligning it to the actual demand.
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