Even as a controversy between the MCl, a subsidiary of the Coal India limited (CIl) and other plants, especially the NTPC, over supply of sufficient and quality coal is yet to subside, a recent law going to be implemented by the Centre to pave way for private companies to mine coal so as to boost production has raised the heckles of the workers’ unions.
Several unions have already held protest march in the Talcher coal belt upping the ante against privatisation in the coal mining sector and are gearing up to join a nationwide agitation in January. The NDA Government has already passed the Coal Mines (Special Provisions) Bill in the lok Sabha and sent it for approval of the Upper House with a view to commercialise coal mining in India by involving private players to raise coal.
The Coal Mines (Nationalisation), or CMN Act, 1973, and the Mines and Minerals (Development and Regulation) Act, 1957 are sought to be amended. Section 3A is being inserted in the CMN Act to enable joint ventures to be formed by the Central and State Governments and their companies with any company for mining operations in India in any form, either for own consumption, sale or any other purpose.
All companies can bid for the 132 mines under schedule-I, which are yet to be explored. Bidding for mines in the second and third categories (mines already producing and about to begin production, respectively) will be open to companies engaged in specified end-uses of the power, cement and steel sectors. The Union Coal Ministry has also notified the final rules for conducting e-auctions of the mines, after receiving comments from all stakeholders. The bill seeks to re-allocate 204 cancelled coal blocks through a transparent e-auction process.
Opposing the move, CITU Angul president Ananda Acharya said the move to privatise coal mining is unfortunate. He said the privatisation of mines will lead to labour exploitation and hinder the peripheral development in the area. Acharya said when the private companies would raise coal, the price of coal would go high. Besides, it would have cascading effect on the power sector. He termed the current bid as anti-people as the private companies would shut their eyes to environment degradation and rehabilitation of the displaced.
The Bharatiya Mazdoor Sangh (BMS) has demanded withdrawal of Bill from the mRajya Sabha. Akhil Bharatiya Khan Mazdoor Sangh (ABKMS), affiliated to the BMS, said that there is no need to privatise coal raising as the CIl workers are raising enough to cater to the present need. Notably, five Central coal trade unions have threatened to resort to cease work, paralyzing of production and dispatch of coal in all the CIl run mines spread over nine States from January 6 next. The unions submitted a 10-point demand to the Union coal Secretary demanding stopping the move to privatize mining and the improvement of workers’ benefits.
Meanwhile, the CIl recently said it is embarking upon two joint ventures to revive the Talcher coalfield. The first joint venture will nbe formed between CIl and GAIl for coal gassification project and the second joint venture will be with Rashtriya Chemicals and Fertilizers limited. The Talcher coalfield has reserves of 38.65 billion tonnes, the highest in India. It covers an area of 500 sqkm.
However, the coal is of lower grade containing only about 35 per cent of fixed carbon, 40 per cent volatile matter and 25 per cent ash content. Coal was discovered in the Talcher coalfields in 1837.