The age of privatization has already stepped in. This move is being welcomed by some of the top consultancy and capital firms of the world that makes claims that the idea of denationalization would help a country realize its fullest potential and derive the maximum benefit out of it. In a country like India which is the world’s largest democracy is not okay with the concept of privatizing the enterprises that concern the native natural resources of the nation.
Coal India and the story of privatization
Coal India is the body that regulates the mining of coals to satisfy the fuel demand and power demands of a nation. Only a particular portion of the mine is allowed for the private companies to mine the coal. It also has a bond that it must hand over the surplus coal to the government.
The Coal India was nationalized in the year 1975 due to the rapid industrialization and the lack of interest shown by the private sector at that time. The Coal India is a Maharatna Company that is operated under the aegis of Ministry of Coal.
Why once neglected by the private sector is now the most sought after?
The private sector would not be bothered about a product that is in surplus as it holds very less market value whereas when the demand for the product increases, the private sector companies flock to extract the maximum potential out of it.
What effects could this privatization have on the market?
Since the responsibility will be vested in the hands of the private sector companies, the companies could generate more profits,and they could double up their products and thus cause more employment opportunities. This is a win-win situation for both the government as well as the companies as the companies could cut down largely on the expenses of fuel and thus pay their employees well. The government can show records of having created more employment, thus meeting the need of the hour, the issue of unemployment.
Why is it being protested against by the trade unions?
The trade unions are protesting against the fact that the workforce will be exploited at a large scale if the coal sector is privatized.
Any development would incur some pros and cons as well. One needs to accept this rule and look at the brighter side that would serve multitude benefits.