Coal sector should be opened for private investment: FM Arun Jaitley

NEW DELHI: Finance minister Arun Jaitley on Monday said he personally believes the time is right to dilute nationalisation of the India's state-run coal industry, adding it is easier to carry out economic reforms in the first year of a government. He said the government has consistently moved in the direction of reforms.

"There is a difference between carrying out reforms in a developing economy than a developed economy. Investor confidence has to be restored, that is a slow process," said Jaitley. Jaitley's comments to ET Now came days after the government lifted diesel price controls and raised the cost of natural gas.

Jaitley said that the government's ability to push through reforms in Rajya Sabha is enhanced after BJP's victory in Maharashtra and Haryana assembly polls. He said the government's strength in Rajya Sabha will increase substantially.

Jailey said the onus is on the government to resolve the issue of coal mining. Coal India is unable to meet the demand for coal in the country. The firm blames delayed environment and forest clearances for the slow growth in production.

The government proposes to auction all 204 coal mines - operating as well as non-operating. Coal India, however, may be given an option to retain some blocks.

Speaking on the hike in gas prices, Jaitley said, " Gas price hike decision is a balanced one. Explorers will make profits at the new gas price level but not windfall gains."

On the banking sector, Jaitley said it is not in the best of health and there are a lot of NPAs.

Speaking on economic growth, Jaitley said, "You can't merely grow because the service sector is growing. I hope that the third and fourth quarter will see economic pick-up."