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Coal India Ltd (CIL) trade unions are likely to soften their stand on the proposed 10 per cent divestment by the government in the state-run miner. The unions, which had been opposed to any stake sale in the company, would propose allowing stake purchase by other state-owned companies in CIL or a share buyback by the firm.
Union leaders will meet Coal Minister Sri Prakash Jaiswal on Tuesday to discuss the issue. The unions fear loss of jobs because of disinvestment but are willing to discuss "other" options. "We will not use the word strike as of now. We will not agree for any private sector purchase of the stake in CIL in the meeting but if the government insists, we are prepared to discuss alternative options. Any other public sector company like Bharat Heavy Electricals Ltd can buy the stake," S Q Zama, secretary-general of Congress-backed Indian National Mine Workers Federation, told Business Standard.
Zama is part of a six-member committee set up to talk to the government on the issue.
The Congress-backed Indian National Trade Union Congress is one of the five trade unions representing over 90 per cent of the 383,000 workers at the world's largest coal miner. The other unions are: Bharatiya Mazdoor Sangh, Hind Mazdoor Sabha and the left-backed All India Trade Union Congress and Centre for Indian Trade Unions. The unions are also going to press for cancelling all the 100-odd coal block allocations made to private companies, which have not commenced production and giving the blocks to CIL.
CIL was listed on the bourses in 2010 through an initial public offering in which the government raised Rs 15,199 crore by selling a 10 per cent stake. The government plans to divest another 10 per cent to rope in around Rs 20,000 crore from the market in what could be the biggest share sale in the current financial year.
"At the time of the last share sale in 2010, we were assured by the government that no further disinvestment of CIL would be carried out. Therefore, a joint resolution was adopted to oppose the new stake sale in the June 24 meeting of the five unions in Kolkata," Zama said. The union representatives met Jaiswal on July 6, who assured taking up the issue with Prime Minister Manmohan Singh.
Coal India produces around 1.2 million tonnes (mt) coal daily and would lose output worth Rs 150 crore in a single day of strike. The opposition from worker unions comes at a time when the world's largest coal miner is struggling to meet the current financial year's production target of 482 mt, a 6.6 per cent increase over the last financial year's output of 452 mt.
