Unions threaten to launch strike if sector is privatised

KOLKATA: Central trade unions that represent 90 per cent of workforce at state-run Coal India (CIL) have threatened to go on an indefinite strike if India opens up the sector, allowing private miners to sell coal commercially in the market.
However, they aren't against the government taking back the mines allotted for captive mining and re-auctioning them to companies who would use the fuel mined from there for their own requirements. They also do not have any objections to the government allotting mines to state utilities.

"We would initiate our opposition as soon as the government decides on allowing private companies to sell coal commercially and would go on indefinite strike. In fact, the unions have already placed before the government that they are against the Centre's move to denationalise the coal sector," SQ Zama, secretary-general of the Indian National Mine workers' Federation, told ET.

Jibon Roy, general secretary of the All India Coal Workers Federation, said the federation would oppose private commercial mining, and will go on a national strike along with other unions if the government decides to go ahead with the proposal. On the proposal to reauction the mines, he said it was in line with the Supreme Court's directive, which recently cancelled mining licences for more than 200 coal blocks allocated for captive use.

"We will keep a close watch on the government's move," he said. The unions expect coal-block auctions to increase the cost of power production. "They (those who win the blocks) will have to include the cost of the auction – the money paid to the government for winning the blocks – this is expected to increase costs," said Roy CIL officials are unfazed by on the proposal that would allow private companies to sell coal.

"There is a huge demand-supply mismatch for coal. If private companies do start selling coal, it will only help substitute import demand," a senior official at the state-run miner said.

"However, the cost of coal produced by private miners may be less than that sold by CIL because 50% of our cost of production includes salary and wages for workmen."