The All India Coal Workers Federation has opposed Coal India move to hike the penalty for its failure to meet the requirements of power producers in the fuel supply agreement model.

The public sector coal company has reportedly agreed to a penalty amount of 1.5% to 40% for not being able to meet the agreed requirement of power companies.

Mr Jibon Roy Secretary of the Federation said the move, ostensibly forced by the Prime Minister Office will lead to immobilizing Coal India as a public sector company, robbing its assets to make the private sector richer.

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%t of the board’s size with only 10% share to its credit for pressurizing Coal India to pass such a clause.

It alleged that this single resolution of agreeing to pay 40% value of the coal for inability to supply the committed amount may prove to be a Coal India swan song making the private business houses richer and warned of its implications on the livelihood of coal workers.

Source - Hindu Business Line

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