Coal India workers’ strike worsens situation
The strike by union workers of Coal India limited has been most unfortunate for two strong reasons. The first is that the move has come at a time when the power and other infrastructure sectors desperately need coal. The second is that the decision to strike work was made on invalid presumptions. Public sector behemoth Coal India limited accounts for 80 per cent of the country's coal production. Due to the strike, its daily average output of 1.5 million tonnes — in itself not a very high figure given the requirements of the industry — could dip to less than 0.5 million tonnes. The very first day of the strike by more than three lakh workers on Tuesday has adversely affected more than 60 per cent of Coal India limited's units across the country; the strike is slated to run its scheduled course for four more days if a resolution is not struck earlier. More than 42 coal-based plants, with a combined capacity of 46,610 MW, are functioning at a critical level of fuel availability.
The average loss as a result of the strike could be in the range of Rs200 crore per day. Worse, the coal shortage means that the Government may have to import the commodity at short notice to maintain the present need levels. This would result in the spot prices of power going up sharply, affecting the end consumers, unless the Government decides to cushion them from the blow. In the latter case, however, the Government shall have to bear the additional burden, which will affect its overall financial health. It is clear at present that many State power corporations are simply too cash-strapped to handle the additional costs that will accrue from the import of coal, and if they are unable to make the purchases the people will suffer more power outages in the coming days. The striking workers should have understood the gravity of the situation before taking the fatal step. But it seems they couldn't care less.
That the union leaders should have demonstrated more responsibility is evident from the flawed reason they have given for striking work. They said that the Union Government's decision on commercial mining of coal as well as divestment in Coal India limited would result in the privatisation of the public sector organisation. This is just not true, as the Government has been repeatedly emphasising. The divestment of stake is a means for the Government to raise funds and meet its fiscal obligations, and not a surreptitious method to privatise Coal India limited. As for commercial mining, it is one of the ways to enhance the production of the commodity and enforce fiscal discipline in its extraction. It must be kept in mind that, according to an estimate, the Government had to import 110 million tonnes of coal in 2013-14 because Coal India limited could not rise to the challenge. It appears that the workers affiliated to various ideological outfits have made the coal ordinance as well as the latest ordinance on the mines and minerals sector an excuse to attempt arm-twisting the Government. In all of this, political leaders, especially those of the left, are gloating over the crisis, with one prominent member even stating proudly that the strike was the “biggest ever”, and furthering the lie that the Government was out to privatise Coal India limited. It is a pity that there are people who are willing to buy the canard.