Pramod Mahajan minister of parliamentary affairs and information technology said that earlier to this was tried but met with stiff reaction from the unions. He said as there is necessary to increase the production of coal it has now been decided to open it up to private companies. Although he said that it has been open up for Indian companies it is well kwon that it means indirectly the foreign multinationals controlling the Indian companies.

Mahajan used careful words to avoid any sort of critisim to this opening up saying that law will be incoporater with the provision to prescribe condtion onlocatis and minimum size of the coal and lignite mine etc.