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Indian's Trade Unions Blocking Auction of Commercial Coal Mining

Coal News - Published on Wed, 17 Jul 2019

Image Source: The Sunday Guardian
Sunday Guardian Live reported that trade unions are blocking the Central government’s landmark decision to auction commercial mining of coal in order to ramp up production in the country. The decision to this effect was taken last year, but nothing has moved so far even as India continues to depend on imported coal to meet its requirements. The country had to import 235.2 million tonnes of coal in 2018-19 valued at INR 1.7 lakh crore, an increase of about 24% in the last three years.

As per the latest figures of the Ministry of Coal, during 2017-18, the country imported 208.2 million tonnes of the dry fuel valued at INR 1.3 lakh crore, while in 2016-17, India imported 190.9 million tonnes of coal valued at INR 1 lakh crore.

In a major reform in the coal sector since its nationalisation in 1973, the government last year allowed private companies to mine coal for commercial use, ending the monopoly of Coal India Limited. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Mr Narendra Modi, had in February 2018 approved the methodology for the auction of coal mines/blocks for sale of coal under the Coal Mines Act 2015, under the Mines and Minerals Act 1957.

He said that under these provisions and rules, the government, according to a senior official, has allocated 25 coal mines through electronic auction. The methodology for the auction of coal mines/sale has been approved by the government and an order has been issued in this regard.

However, after the announcement, the Indian National Mine Workers’ Federation, affiliated to the Indian National Trade Union Congress, threatened to strike work in CIL to protest against the government’s decision. The government decided to keep the issue on the backburner until the general elections. No progress has been made in this area ever since and the delay in implementing coal reforms is taking a toll on the Indian economy.

Source :

Posted By : Sanju Moirangthem on Wed, 17 Jul 2019
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