State hesitates to opt for privatisation of coal

KOLKATA: The West Bengal government does not seem to believe in the principle: Practice what you preach. While the recently announced state mineral policy advocates private sector participation in minerals, it professes that the state's most valuable mineral resource— coal—should remain with the state sector. This outlook, however, does not synchronise with the Centre's new Integrated Coal Policy, which has been formulated with a view to encouraging private sector participation and inviting foreign investment in the coal sector.The highlight of the new coal policy is that it proposes to allow companies to do coal mining in the country in new coal blocks without the existing restriction of captive consumption.However, the state government's views in this matter is different. Today's large scale subsidence in the Ranigunge coalfields area is mostly the result of unscientific and haphazard mining by the private operators of the pre-nationalisation era. The state government, therefore, does not favour throwing open coal mining to the private companies, the policy document stated.In select cases, however, joint venture participation may be considered, but such JVs would be considered primarily to put an end to illegal mining, the policy document stated. Rehabilitation of the people affected by mining shall be the responsibility of the mining company. It is the considered view of the state government that the mining company should take full responsibility of rehabilitating the affected people, the document stated. The state government will, however, extend administrative cooperation for successful execution of the rehabilitating programmes.For other minerals, especially minor ones, the policy, however, is practically a carbon copy of the Centre's policy in terms of its attitude towards private entrepreneurs. Healthy competition between the state undertakings and private entrepreneurs will auger well for the development of mineral resources of the state, the document stated. The document has rued the mineral surveys, by government bodies.