Coal news and updates

CIL faces 10 mt production loss as agitation continues

Coal India (CIL) faces a production loss of 10 million tonnes of coal in the current financial year as 122 of its employees sacked for indiscipline in Odisha are persisting with their agitation, threatening the closure of some crucial mines.

The agitation, said to have political support, hasn't ended despite the company's offer on Monday to reinstate the employees sacked in May for indiscipline. The terminated employees have threatened to go on indefinite protests starting July 25.

The workers were sacked for not vacating land in lieu of which they had been given jobs in Mahanadi Coalfields Ltd (MCL), a subsidiary that contributes about a quarter of Coal India's production.

"Despite having agreed to disburse more than in hand, Mahanadi Coalfields Ltd (MCL) feels helpless with villagers of Hensmul at Talcher coalfields in Angul district of Odisha threatening to go on indefinite dharna at its two mega projects - Bhubaneswari and Ananta -- from July 25," an official statement said.

Delays in shifting the villagers may result in a loss of around 10 million tonnes of coal in the current financial year from the Bhubaneswari opencast mine, which may result in a loss of about Rs 100 crore in royalty to Odisha, it said.

MCL announced a recall of the employees late on Monday as a "goodwill gesture". Officials in the coal ministry said the company was under pressure from local politicians and trade unions to take back the employees and end the agitation that was impacting production.

But the workers are now demanding alternate plots before vacating the land they occupy, which could take at least six months according to MCL.

While reinstating the employees, the company has exempted them from submitting affidavits stating that they would vacate the land by October 31. The affidavits had been a pre-condition for reinstating the employees as agreed during tripartite meetings involving MCL management, employees and the district administration.

Acoal ministry official said a written agreement from workers was required to prevent them from backtracking.

The employees were recruited at the Talcher coalfield between 1995 and 2009 and as per the terms of appointment they were supposed to vacate their land within five months of joining the company.

Source: The Economic Times