The closer that India gets to a free society where private business can do what they want, the better they will be. India has far too many government regulations and things that prevent people from doing business. Privatizing coal will lower prices, and it will be a great way to allow private businesses to be successful.
Any time a country moves to privatize a previously nationally-held resource, there is naturally at least some amount of controversy. And while I can't deny that these kinds of moves have in some cases had unfortunate consequences, in this case I believe it will help India. Particularly when it comes to energy resources, it is helpful to leave their allocation up to market forces, to ensure that they are used efficiently and responsibly.
Just like America the coal industry should be run by private industry to stimulate job growth. If the government controls all of the resources then the economy will always have trouble with growth. The rupee is already extremely low compared to other currency standards and drastic measures like this should be taken for economic growth.
Keep it under the control of the government BUT have different sections of the state coal industry under different management that compete against each other and allow private shareholders to buy noncontrolling stock in them. Then the state retains the ultimate authority and so can stem the worst excesses of private industry while still benefiting from the incentive to innovate that comes from privatization.
Privatizing India's state-run coal industry will result in an oligarch rise and a decline in the wages of the coal workers. The loss of state revenue will not be made up for by increased taxes to the privatized coal companies and the decrease in worker wages will stunt the Indian economy.