Any attempt to privatise coal sector will be resisted: CITU

Demanding scrapping of all coal blocks allocated to private companies for captive use, trade body CITU today said it will oppose any move to privatise the coal sector.

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"The Centre of Indian Trade Unions (CITU) condemns the statement of the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia pitching for privatisation of coal, as reported by the media today," the trade body said in a statement.

CITU general secretary Tapan Sen, who is also a Rajya Sabha MP, said such a move would be resisted by strike and " Ahluwalia's argument for privatisation of coal is based on false premises that Coal India (CIL) was incapable of mining and supplying coal to fulfil today's power plants needs and 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," he said.

In fact, the Planning Commission itself fixed coal requirement for power sector and in the mid-term review cut it down because the projected power plants could not be established, CITU said.

Despite all hurdles, during the last 10 years of plan period, CIL could achieve 99 percent of the target, he added. Sen alleged that in reality the government itself was not allowing CIL to produce more coal by not clearing the new projects and by taking 55 major coal blocks away from CIL subsidiaries.

He also alleged that majority of the ultra mega power plants could not be set up. Contrary to the impression, given by Planning Commission Deputy Chairman, of import under compulsion, Sen said "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." CITU said, "all coal blocks, allocated to private for captive use, be scrapped and CIL be given statutory responsibility of all mining and allocation of coal."