The All India Coal Workers’ Federation has opposed Coal India’s move to hike the penalty for its failure to meet the requirements of power producers in the fuel supply agreement (FSA) model.
The public sector coal company has reportedly agreed to a penalty amount of 1.5 to 40 per cent for not being able to meet the agreed requirement of power companies.
The move, ostensibly forced by the Prime Minister’s Office, will lead to immobilising Coal India as a public sector company, robbing its assets to make the private sector richer, said Jibon Roy, Secretary of the Federation in a release here on Monday.
Calling upon all unions in the coal sector to forge unity on this issue, the Federation flayed Coal India Board “for its failure to play down the ploy of its own private component, which constitutes 50 per cent of the board’s size with only 10 per cent share to its credit,” for pressurising Coal India to pass such a clause.
It alleged that this single resolution of agreeing to pay 40 per cent value of the coal for inability to supply the committed amount may prove to be a Coal India's swan song, making the private business houses richer, and warned of its implications on the livelihood of coal workers.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.