India: calls to end government coal monopoly

Tuesday, 08 May 2012 07:55 AK
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Federation of Indian Chambers of Commerce and Industry (FICCI) called on the Indian government to reduce its stake in PSUs [public sector units, of which Coal India Limited (CIL) is one] "to less than 50 per cent which would be sufficient enough for it to be part of all major decision making processes in the company but at the same time would help make PSUs observe basic market discipline." (Source: Economic Times.)

FICCI also urged reduction of energy subsidies: "Cross-subsidies prevail among consumer categories due to populism which leads to virtually giving free power for the agricultural sector. Revision of tariff is often guided by political pressures than economic reasons. Rationalisation of tariff for industry by reducing the gap between industry and domestic tariff is necessary"