Coal India's plan to import coal following a government diktat has raised the hackles of workers' unions and former top officials of the state-run firm who say the move is in fact towards privatization of the coal sector.

Mr Shymal Dutta secretary of The All India Coal Workers' Federation said that "We have been opposing the government's plan to privatize the coal sector in the country. Its decision to import coal through Coal India Limited to meet the FSA commitment is a move to privatize the sector. We will oppose the import of coal."

As more than half of the nation's electricity is generated with coal, the world's largest coal miner is under scrutiny for its inability to raise output to meet the growing demand of power utilities. In a bid to fill the supply shortage, the Prime Minister's Office has through a presidential directive asked the miner to sign fuel supply agreements to meet at least 80% of the coal requirement of power projects.

Under the modified FSAs to be inked with power firms, the coal major will source 65% from domestic output and 15% through imports to meet the assured supply of the contracted quantity. But former officials and independent directors of the Coal India board have questioned the rationale behind the government's decision and cautioned the miner on this.

Mr SK Barua director of Independent board member and Indian Institute of Management (Ahmedabad) has cautioned the company against signing revised FSAs with companies named in the Comptroller and Auditor General report. FSAs are clearly designed to bestow favor on chosen projects and power producers.

A former CIL chairman said that "The primary job of Coal India is to produce and sell coal. Why is the miner being converted into a coal trader?" Why would the required coal for power firms be imported through the coal major? This is not the right move. Its primary job of producing the fuel would suffer."

Mr Hemant Kanoria chairman of power generation and distribution company DPSC is also sceptical about the government decision. Coal India needs to focus more on raising productivity and production to meet the requirement of the power firms by domestic coal. Importing coal through it is not a good idea.

Source - Daijiworld.com

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