ANY ATTEMPT OF COAL PRIVATIZATION WILL BE RESISTED

ANY ATTEMPT OF COAL PRIVATIZATION WILL BE RESISTED

CITU condemned the deputy chairman of Planning Commission Montek Singh Ahluwalia’s statement pitching for privatization of coal. In a press statement, issued by CITU general secretary Tapan Sen on 4 January, further, cautioned that the Union government should desist from any such ill-conceived attempt which would be resisted by strike and struggles by the coal workers unitedly as was successfully resisted in the past.

Ahluwalia’s argument for privatization of coal is based on false premises that coal India Ltd (CIL) was incapable of mining and supplying coal to fulfill today’s power plants needs and the country was relying increasingly on imports. 43,000 MW power plants’ coal requirement, projected by Ahluwalia, is itself misleading as it is only installed capacity. Actual power production and, therefore, of actual coal requirement were much below. In fact, Planning Commission itself fixed coal requirement for power sector and in mid-term review cut it down as because the projected power plants could not be established. Despite all hurdles, during last 10 years plan period, CIL could achieve 99% of the target, fixed by the Coal Ministry as per Planning Commission’s projection and mid-term review.

In reality, the Government itself is not allowing CIL to produce more coal by not clearing the new projects prepared by Central Mine Planning & Design Institute Ltd (CMPDIL), the subsidiary of CIL; by taking 55 major coal blocks away from CIL subsidiaries, in their operational stages, and handing over to private companies like of CCL to Tatas, of NCL to Reliance etc.; by not giving forest clearance; by not allowing to spend for procurement of modern implements despite accumulated amount of Rs.68,000 crores remaining idle; etc. It is Government’s failure in infrastructural development, particularly of railway transportation, for evacuation of accumulated coal from pit heads to their destination, which forced CIL to cut production.

290 coal blocks, allocated to private sector for captive mining for end use mainly in power sector, which itself is under scrutiny because of coal-gate scam; remained un-utilized and used for profits on speculative business.

16 Ultra Mega Power Projects (UMPP), finalized in 2006, based on captive coal mines, remained uninstalled. So far, only 4 UMPPs started installation out of which, according to Government’s own decision, 2 are based on imported coal. Contrary to the impression, given by Ahluwalia, of import under compulsion; there are several vested interests behind coal imports. Many private sector companies, despite agreement with CIL, cut down lifting of CIL coal and switched over to imports.

Therefore, Ahluwalia is totally wrong in accusing CIL and pitching for privatization for opening the door of country’s this non-renewable natural resource for plunder and loot by foreign and domestic corporates for super profits.

CITU demanded that all coal blocks, allocated to private for captive use, be scrapped and CIL be given statutory responsibility of all mining and allocation of coal; and that CIL be given full autonomy in respect of capital investment, equipment procurement and manpower augmentation for expanding and widening its production network.