Coal India, trade unions to meet on Sep 11 on stake sale issue

Development follows the five major trade unions representing the workers of CIL deciding to go on a three-day strike from Sept 23

State-owned Coal India (CIL) will hold a meeting with five trade unions next week to persuade them to withdraw their strike notice against the government's move to divest 5% stake in the PSU firm.

The development follows the five major trade unions representing the workers of CIL deciding to go on a three-day strike from September 23.

"Strikes in the coal sector and for us to engage with trade unions etc is a very regular phenomenon...I think we are in the next stage of negotiation.

We have a meeting on 11th (September) with them (trade unions) at our level. They gave us strike notice. There are a host of demands. There are some demands we can negotiate, there are some demands which is beyond us," CIL Chairman and Managing Director S Narsing Rao told reporters on the sidelines of a function organised by CII.

The government is likely to clear by next week appointment of legal advisors to manage the disinvestment of 5% stake in (CIL).

Goldman Sachs, Credit Suisse, Deutsche Bank and SBI Capital Markets are among seven merchant bankers selected to manage the stake sale in CIL.

The government currently holds 90% stake in the company.

The Disinvestment Department pared a plan to sell 10% stake in CIL to placate employee unions.

Finance Minister P Chidambaram had earlier tried to assuage the workers unions, saying the disinvestment proceeds from the coal behemoth would be invested in PSU banks.

CIL was listed on the bourses in 2010 after the government raised Rs 15,199 crore by selling 10% stake in the country's biggest initial public offering. The company has a cash balance of Rs 62,000 crore.