Opinion CIL disinvestment: Unions a divided lot

Despite aggressive posturing,the trade unions of public sector Coal India are divided about enforcing a total closure of mining operations to protest the disinvestment of a 5 per cent government stake in the company. The coal ministry is consequently unfazed despite a call by CITU-affiliated All India Coal Workers’ Federation on Wednesday for a three day strike,beginning September 19. The government holds a 90 per cent stake in company. The first round of disinvestment in the company in 2010 had garnered the government Rs 15,199 crore.

Other unions such as the Indian National Trade Union Congress,Hind Mazdoor Sangh and Bharatiya Mazdoor Sangh in CIL are still undecided on their future course of action. While there is unanimity among the five unions on issues like implementing the National Coal Wage Agreement-IX and increasing pension and post retirement medical benefits,but on disinvestment they seem to differ. INTUC,BMS and HMS have softened their position after the government shelved its plans to offload a 10 per cent stake in CIL,instead halving it to 5 per cent. Coal minister Sriprakash Jaiswal had last week said that these unions had given their consent to proceed with the 5 per cent stake sale. “In case these unions abstain from the proposed strike,then the two left-affiliated unions are likely to feel discouraged anticipating a diluted response to their call,” a source said.

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Meanwhile,the government today made its determination clear by saying it intends “to disinvest 5 per cent of paid up equity capital or over 31.58 crore shares of CIL through offer-for-sale of shares by promoters through the stock exchanges.” At the current market price of Rs 268 apiece,the 5 per cent stake sale would fetch Rs 8,463 crore to the exchequer.

Priyadarshi is an assistant editor based in New Delhi

priyadarshi.siddhanta@expressindia.com