The NDA Government which aims to garner Rs 22,000 crore through a 10 per cent stake sale in Coal India ltd (CIl), could face tough times ahead as it will have to deal with the trade unions of the Maharatna Company before going ahead with the move. According to sources, a cautious Coal Ministry is learnt to have refrained from giving a direct opinion on whether it supports the CIl stake sale or not.
Sources privy to the development told The Pioneer that in its response on the matter sought by the Department of Disinvestment (DoD), the Coal Ministry has simply elaborated on the developments of December 2013 and January 2014, when the CIl unions had gone up in arms over the then UPA Government’s proposal of a 10 per cent offloading of its shares in the coal behemoth, and had threatened to launch a nation-wide agitation against the move.
The response on the matter by the Coal Ministry was sent to the DoD on July 11, sources informed.
Ministry officials were tightlipped and refrained from commenting on the matter with a top official simply stating that the ball was now in DoD’s court. On being asked as to whether the issue has been raised with CIl’s unions and how the ministry plans to convince them, official sources said that talks will happen and efforts will be made to bring the unions on board.
Sources, however, pointed out that the Coal Ministry by refraining from giving a definitive response to the DoD’s note asking for its comments on CIl’s disinvestment, has given out a clear message that the Finance Ministry will have to take a final call on the matter.
The CIl union consists of left leaning AICWF and CITU, BJP-backed Bhartiya Mazdoor Sangh and the Congress-affiliated INTUC. Apart from INTUC, none of the other labour bodies have supported the disinvestment move.
Though considered to be a tough task master, taking into account the fact that all the Cabinet ministers in the NDA Government have been on their toes since the new dispensation assumed power at the Centre on May 26, sources pointed out that it will be interesting to see how
Prime Minister Narendra Modi tackles the challenging task of bringing the CIl’s unions to agree with the proposed move.
The unrelenting unions in December 2013 had threatened the then UPA Government with a nation-wide agitation if it went ahead with offloading its 10 per cent stake in the Maharatna company.
As reported by this newspaper in January this year, a harried UPA Government, under pressure from the unions and nearing its tenure at the Centre, had even thought of exploring the special dividend route to come out of the CIl disinvestment imbroglio.
CIl subsequently obliged the Government during the same month by doling out a high dividend of Rs 29 per share, which amounted to Rs 18,317 crore for 2013-14.
Prior to the special dividend, the UPA Government had even climbed down from its initial plan of 10 per cent stake sale in CIl to 5 per cent.
The NDA Government has announced an ambitious disinvestment target of Rs 63,425 crore for the current fiscal in the Union Budget, which it plans to achieve by divesting its stakes in cash rich State-owned entities like ONGC, NMDC and Nalco. It has also included CIl in its divestment plans, however in case the coal major divestment does not happen, then it could be a tough proposition for the Government to achieve the target.