Coal India (CIL) today took workers on board for its Rs 12,000-crore disinvestment plan after agreeing to their wage revisions and other demands.
Following the agreement, trade unions withdrew their proposed strike against the sell-off move.
"CIL has concluded an agreement with trade unions, which were opposing the proposed disinvestment in the company. With this agreement in place, we are expecting to launch CIL's IPO by July-August, which may fetch the government around Rs 10,000-Rs 12,000 crore," Coal Minister Sriprakash Jaiswal told reporters after chairing a day-long meeting with the unions.
The trade unions comprising INTUC, AITUC, CITU, had threatened to start an agitation next week and go on a three-day strike in May against government's 10 per cent proposed divestment, but withdrew the plans after entering into an six-point agreement with CIL.
"We have withdrawn the proposed agitation and strike. The government has agreed to our main demand that it will always maintain majority stake in the firm," INTUC National Secretary S Q Zama said.
The government plans to disinvest 10 per cent stake in CIL, nine per cent of the shares would be channelised through the initial public offer (IPO) and the rest would be sold to the company's employees. The Centre at present holds 100 per cent equity in the coal major.
At present, the Coal Ministry--administrative ministry of CIL-- has floated the draft Cabinet note for the proposed stake sale for inter-ministerial discussions. The Ministry hopes the the disinvestment proposal would be placed before the Cabinet by the end of this month.
Present on the occasion, CIL Chairman P S Bhattacharyya said, "It was explained by the Minister that the present programme of disinvestment of CIL shares has become imperative for the purpose of listing the shares in the capital market."
"He further explained that listing of the shares within a period of three years is the pre-condition associated with conferment of navratna status to CIL."
Among other things, the country's largest coal producer, agreed to complete the next wage agreement with the workers before expiry of the current agreement, benefiting PSU's about 4 lakh employees.
"For the first time in history of any PSU in the country, CIL has agreed to implement next wage revision immediately after expiry of the present pact on June 30, 2011," Jaiswal said.
The government plans to raise as much as Rs 40,000 crore through stake sale in PSUs like SAIL, CIL and EIL in the current fiscal.
