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Coal mining by private firms: Labour unions oppose Cabinet decision

The trade union leaders apprehend that the move would gradually ruin state-run Coal India as private players would not do mining ethically

IANS  |  New Delhi/Kolkata 

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Photo: Wikimedia Commons

Central trade unions in sector opposed opening up of commercial mining for private sector after the on Tuesday approved the methodology for auction of mines for sale of coal.

"We oppose the move as the decision was taken arbitrarily without discussing with us. We will soon come out with a decision," said the RSS-backed Mazdoor Sangh affiliated Akhil Khadan Sangh Ray said.

Similarly CITU-affiliated All Coal Workers Federation's General Secretary D.D. Ramanandan said opening up to private sector was an attempt to hand over coal mines to the foreigners.

INTUC-backed Indian National Mineworkers' Federation General Secretary also opposed the step taken by the government.

The trade union leaders apprehend that the move would gradually ruin state-run as private players would not do mining ethically.

Currently, the private sector is allowed for captive use only.

On Tuesday, the Cabinet Committee on Economic Affairs, chaired by has approved the methodology for auction of coal mines/blocks for sale of coal under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957.

The opening up of commercial coal mining for private sector is considered as the most ambitious coal sector reform since the nationalisation of this sector in 1973 and the government claimed this reform was expected to bring efficiency into the coal sector by moving from an era of monopoly to competition. It will increase competitiveness and allow the use of best into the sector, it said.

The higher investment will create direct and indirect employment in coal-bearing areas especially in mining sector and will have an impact on economic development of these regions, a statement said.

"It will also lead to security as 70 per cent of India's is generated from thermal power plants. This reform will ensure assured coal supply, accountable allocation of coal and affordable coal leading to affordable power prices for consumers," it added.

First Published: Wed, February 21 2018. 08:22 IST