Trade union CITU on Thursday claimed that workers of Coal India Ltd (CIL) would oppose disinvestment in the company, which is expected to undertake its initial public offering (IPO) in September this year.
Jiban Roy, general secretary of CITU-affiliated Colliery Workers Federation, said that although the government had announced only 10 per cent stake sale in CIL, there were apprehensions over the gradual privatisation of the miner, which is among the largest in the world.
Workers had already observed a nation-wide strike on May 5 and more would follow in the run-up to the disinvestment schedule, he added.
CIL sources, however, said that the unions have been made to “clearly understand” that listing is imperative as per government norms applicable to Navratna public sector undertakings (PSUs). “Only the minimum possible divestment of 10 per cent will happen,” the source said.
It is understood that CIL workers' unions have already had three opportunities to express their grievances before the government.
The unions have met the coal secretary, the coal minister Sriprakash Jaiswal and the Union finance minister Pranab Mukherjee on April 9, April 16 and April 30 respectively.
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Mukherjee, sources added, is said to have assured the unions that the 10 per cent stake sale is the final round of disinvestment in CIL during the tenure of the incumbent United Progressive Alliance (UPA) government.
The 10 per cent divestment in CIL is part of the UPA government's plan to raise Rs 40,000 from PSUs this year in an effort to bridge the widening fiscal deficit.