Jul 24, 2013 09:09 AM IST | Source: CNBC-TV18

Coal India union suggests NLC model for divestment

CNBC-TV18's Anshu Sharma, quoting sources, reports that the Coal India union has suggested the use of the NLC model for divestment in the coal PSU.

The Coal India union has suggested the model used to divest stake in Neyveli Lignite Corporation (NLC) to offer stake in Coal India, reports CNBC-TV18's Anshu Sharma, quoting sources.

Union representatives met coal ministry officials including the coal minister, and have sought a buyback or the model to divest stake in NLC which was done through state run companies. However, sources indicate that it is not possible to follow that model because Coal India has operations that are spread across nine states and there is little expectation of state-run companies contributing for a stake in the coal PSU which is worth Rs 20,000 crore.

The union also assured the government that there will be no strike. The government promised that it will meet with the union again on July 31 and discuss the possibilities regarding the divestment in Coal India.

Coal India produces about 1.5 million tonne of coal per day and a labour strike could cost about the exchequer Rs 150 crore per day.

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