"We are a coalition government, and that limits our options in some ways. Privatization happens to be one such area"

Manmohan Singh's quote is referring to the limitations of a union federal government. A union government is a type of federal government where multiple political celebrations come together to form a majority in the legislature. This type of federal government can be advantageous because it enables a variety of perspectives to be represented, but it can likewise be limiting in terms of the alternatives offered to the government. In this case, Manmohan Singh is referring to the truth that privatization is one area where the union federal government is limited in its options. This might be due to the reality that various parties in the union may have various views on privatization, making it challenging to come to a consensus. Ultimately, Manmohan Singh is acknowledging the restrictions of a coalition government, and the reality that privatization is one area where those constraints are particularly obvious.