Unions oppose Centre’s move to privatise coal sector

New Delhi: Trade unions are opposing the Central government’s landmark decision to open India’s coal sector for private players in order to ramp up production in the country. The auction process for commercial mining started last month.

These trade unions, which observed a three-day strike early this month against the move, are now planning to go on one-day strike on 18 August against the reported divestment or buyback of shares of the Public Sector Undertaking Coal India Limited. One of the major demands during the previous three-day strike was the withdrawal of the decision to allow commercial coal mining and stopping all steps to privatise the CIL. The decision to observe a strike next month has been taken despite a clarification made by the Union Coal Minister Pralhad Joshi. In a tweet, he said: “News making the rounds about the disinvestment of Coal India is completely false and baseless. The government has taken no such decision and is continuously taking steps to strengthen the coal major.”

Last month, PM Narendra Modi launched the auction process for 41 coal blocks for commercial mining. This auction is expected to garner Rs 33,000 crore of capital investment in the country in the next five to seven years. The launch of the auction process marked the beginning of unlocking of the country’s coal sector

which will help India become the largest exporter of coal. Worker unions affiliated to five central trade unions—Bhartiya Majdoor Sangh, Hind Majdoor Sabha, All India Trade Union Congress, Centre of Indian Trade Unions and Indian National Trade Union Congress—held a meet this week to discuss the proposed divestment and share buyback of CIL by the government, in which it was decided to go for a one-day strike on 18 August, said an HMS official. A joint notice will be served on 1 August in this regard after which the unions will start mobilising the workers through rallies, demonstrations, gate meetings, pit meetings etc.  The government took the decision to allow private firms to mine coal for commercial use in 2018 only. Due to opposition from trade unions, the government deferred its implementation till general elections in 2019.  Last month, the PM set the ball rolling for the auction process.