Indore: Union Minister of State for Coal and Mines Ravishankar Prasad has ruled out privatisation of the public sector Coal India Limited (CIL) but said private investment would be allowed in core sector to improve production.

There would be no retrenchment of workers, Prasad told reporters on May 23, adding the company, which was earlier suffering a loss of Rs 1,414 crore, was now earning a profit of Rs 1,400 crore.

"CIL has seven companies at present, of which four are earning profit, while three are running in loss. The company will not be privatised. However, to encourage competition and improve production and quality, private investment will be allowed in core sector only," he said.

The ministry has reserved 127 blocks in the core sector for it, Prasad said, adding the 275 blocks reserved for CIL would not be touched for privatisation.

A Bill in this regard is pending in Parliament and the move will encourage private and foreign investment in the sector, he said, adding any company interested in mining must have its registered office in India.

Talking about reforms in coal sector since the Bharatiya Janata Party (BJP)-led government assumed office, he said the ministry in order to plug loopholes has transferred nearly 708 officials posted at the same place for the last 20 years.

Similarly, following complaints in loading of coal, the ministry has shifted 225 persons to check the menace, Prasad added.

PTI