Govt fails to get unions on board for CIL stake-sale

Has only got assurance of no-immediate strike

While the tripartite meeting today between Coal ministry, Coal India (CIL) and unions over failed to settle CIL stake-sale tussle, the government seems to have at least pursued workers to stay away from the strike.

"There is absolutely no possibility of a strike. Our talks with the trade unions are on," Coal minister Sri Prakash Jaiswal said after the meeting in Delhi.

While unions are yet to be on board for the 10 per stake sale in Coal India to raise about Rs 20,000 crore, they too ruled any possibility of any immediate strike. "No we are not going to resort to strike immediately. Both the coal ministry and unions have put across our opinions. Let us see," Ramendra Kumar, secretary of Indian Mine Workers Federation, which is affiliated to the left-leaning All India Trade Union Congress, told Business Standard.

There will be another round of meeting on this on July 30. Suggesting an indication of softening of its stand, Kumar said, "We hope some middle path will be worked out before we meet again on July 30."

"We told the ministry and the company that the government can not go on diluting 10% stake in the company from time to time. There is no limit to  to this dilution. The ministry told us that the funds raised through stake sale would be used to strengthen the banking sector," S Q Zama, Secretary General of Congress-backed Indian National Mine Workers Federation (INMFW) said.

Also, the unions indicated in the meeting they were prepared to discuss alternate options like any other public sector company like Bharat Heavy Electricals (Bhel) or state governments buying the stake.

However, a top CIL executive said, ""The unions raised the possibility of a Neyveli Lignite type stake sale where the state government came forward to take up the stake. But NLC's case is not comparable to CIL. Coal India's operations are spread across ten states unless NLC which has operations only in one state. Also, the quantum of the funds to be raised are not comparable."

Sources in CIL suggested, at best there could be a commitment from the government to the workers on no further stake dilution.