Coal India to shut 37 mines this fiscal year

NEW DELHI: Coal India Ltd plans to shut 37 underground mines by the end of this fiscal year, two company officials said, despite unions’ plans to strike for three days this month if the decision is not withdrawn.

The coal workers unions, which say they represent more than 400,000 employees of Coal India and closely-held Singareni Collieries Ltd, last month called for a withdrawal of plans to close coal mines and merge the coal miners’ provident fund with the employees’ provident fund, among other things.

The move will lead to the redeployment of about 11,000 workers, who will be transferred to open-cast mines that need greater labour and produce more coal, one of the officials said, adding that the company is negotiating terms with the unions.

“Quite a number of these mines are incurring huge losses, and their production is minuscule. So, Coal India is looking to close mines that are not profitable,” the official said.

Coal India operates 413 mines, of which 207 are underground, 176 are open cast and 30 are mixed.

One of the unions which is close to Prime Minister Narendra Modi’s party and says it has the support of about half of Coal India’s workers said it is negotiating with the company.

“We will jointly close non-profitable underground mines with Coal India once we get favourable terms and more clarity on how workers are going to be redeployed,” said Basant Kumar Rai, vice president of Bharatiya Mazdoor Sangh (BMS).

BMS was one among the five unions which signed a letter seeking seven demands including the withdrawal of mine closure plans. Another union Hind Mazdoor Sabha said it is sticking to its anti-mine closure stance. The other three unions were not immediately for comment.

Read more at Economic Times

Advertisements

About Friends of Coal (North East)

Since its establishment in 1985, Mahalaxmi Group has consistently achieved its goals and demonstrated its ability to expand its market share, achieve excellence in the sector it operates in and realize shareholder value. In the last 10 years alone, the company has gone through a tenfold increase, expanded its reach countrywide and introduced new products and innovations. Today, we remain devoted to the same principles and aspirations that pushed our success over the decades. Values rooted into our corporate culture include zero compromise on quality, persistent value for money for our clients, a strong commitment to augment value for our investors and to achieve new heights and prosper together. We are actively working to contribute our share in environment aid by fostering plantation and greenery so that the places we are involved in experience the least negative climate impact.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s