Indian unions call strike to protest FDI in coal industry

miningweekly.com General,  International 2019-09-11 10:24:58

Trade unions representing workers in the Indian coal mining industry have announced a strike for September 24, to protest the recent government decision to allow 100% foreign direct investment (FDI) in domestic commercial coal mining.


The day-long strike, announced by the five trade unions, is a precursor to prolonged agitation unless the government rolls back a decision to open up the sector to overseas private miners.


Trade unions affiliated to all major political parties, including Indian National Congress and Communist Party of India, represent workers in State-run Coal India Limited (CIL) and Singareni Collieries Company Ltd (SCCL). However the labor arm of the Bharatiya Janata Party, the ruling party in New Delhi, would not be joining the protest.


Earlier this year, the Coal Ministry opened up commercial coal mining for private miners thereby ending coal industry nationalization since 1973. However, to push privatization of the industry further, the Ministry last month amended regulations permitting 100% FDI in commercial coal mining, which would enable global mining majors to invest in the Indian coal industry through wholly owned subsidiaries.


The major trade unions in the industry have launched protests against the move, claiming that the advent of international investors would impact on CIL's and SCCL's revenue, leading to the erosion of the competitive edge of government mining companies, loss of consumers and pricing power with the brunt of this being borne by workers.


"As government mining companies lose revenue, it is the workers who will eventually bear the brunt and wages, bonus and other payments may be impacted. Besides, its approach towards workers will become more conservative as government companies will try to control costs," a trade union leader said.


The trade unions reckon that any international resource major investing and developing coal projects in the country would deploy higher levels of mechanization to improve productivity at lower wage costs. This would not only lead to lower cost of production for foreign mining companies, but also erode the cost competitiveness of government coal companies.


CIL has an estimated wage bill of about $5.35 billion a year and to remain competitive, the government miner would have to curtail wages and bring down the cost of production, which would threaten jobs in the sector, the trade union leader said.


(Writing by Becky Du  Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Downward trend shows up in Chinese import thermal coal market 2020-02-24

A sign of downward trend has been seen in the Chinese seaborne import thermal coal market with a pale end to the last week, possibly linked to the pickup in supply of domestic mines that weakened Chin

2 China's thermal coal outlook gloomy amid accelerating production 2020-02-24

Chinese spot thermal coal outlook dimmed given accelerating mining activities at major production bases, although current supply-demand balance hasn't caused a clear fallback. According t

3 China major coal firms restore 95% production capacity 2020-02-24

Coal companies controlled by the Chinese central government had put more than 95% of their capacity back into operation as of February 22, an official with the National Energy Administration said, in

4 Virus hits shipping, spreading global economic strain 2020-02-24

Sea freight transport, the lifeblood of trade and a bellwether of the global economy, has been blown off course by the new coronavirus, sparking general alarm. As analysts pore over chart

5 Qinhuangdao coal stocks rebound above 5Mt amid recovered supply 2020-02-21

Coal inventories at Qinhuangdao, key transshipment port in northern China, have recovered to above 5 million tonnes for the first time since early January, due to accelerated inbound arrivals followin

6 NW China city restores 75% of coal capacity, yet worries linger 2020-02-21

Yulin city, a major coal production city in northwestern China's Shaanxi province, had restored 75% of its total coal production capacity as of February 18, according to a news briefing on the same da

7 China Coal Daily Track (Feb 21) 2020-02-21

Thermal coal Production area Purchases were active in Shaanxi from coking plants and chemical factories in local and surrounded areas, worsening supply woes. Labor shortages made most coal min

8 Expectations diverge on Chinese thermal coal market 2020-02-21

Market participants held different opinions about the direction of Chinese domestic thermal coal market from late February to early March, mainly focusing on the debate over whether recovery in the su

9 Chinese seaborne import thermal coal suffers poor liquidity, prospect unclear 2020-02-21

Chinese seaborne import thermal coal market still suffered poor liquidity near late this week, marking sluggish transactions for over a week. Near-term prospects remained murky due to uncertain Chines

10 Active buying pushes up thermal coal prices in Shaanxi 2020-02-21

Thermal coal prices continued edging up in Shaanxi, the third-largest coal production base in China, as end buyers were scrambling to buy the material in an undersupplied market. In Yulin

Most Read Articles

1 China's import thermal coal trading in a standoff amid uncertainty 2020-02-18

Trading activity entered a lull in Chinese import thermal coal market at the beginning of this week, as Chinese end buyers temporarily stoppedseeking cargoesfrom import market amid growing uncertainti

2 Indonesian thermal coal holds support from rains despite China's curtailed demand 2020-02-19

Indonesian thermal coal held steady for sessions despite a marked decrease in Chinese demand, as the material remained supported by local heavy rains that have caused prolonged supply woes.

3 Thermal coal supply remains tight at N China ports despite quickened mining resumption 2020-02-19

Thermal coal shipments to China's northern transfer ports remained low although more mines resumed work in response to the government's call. The National Energy Administration said on Fe

4 Chinese thermal coal prices keep sideways as supply shortage eases 2020-02-18

Spot thermal coal prices were little changed at China's northern transfer ports on the first trading day this week, as the sentiment turned weaker after domestic supply showed a sign of recovery.

5 China coking coal supply recovery speeds up; Mongolia to reopen coal exports borders 2020-02-21

Coking coal supply has been on the fast track to approach a full-scale recovery in China's main production areas recently, as a majority of miners gradually resumed operation after finishing approval

6 S Africa thermal coal exports hit 3-yr low in 2019 2020-02-20

Thermal coal exports from South Africa, a major coal production nation worldwide, nosedived to a three-year low in full-year of 2019, showed customs data. The country supplied a total 75.

7 Weekly China thermal coal market analysis and forecast 2020-02-18

China's spot thermal coal prices grew at a moderated pace in the past week, with upward momentum capped by accelerated production recovery at mines in production bases. Import coal market gradually co

8 Weekly China coking coal market analysis and forecast 2020-02-18

Coking coal market further gained strength at China's main production areas during the past week, as coal supply still far fell short of demand due to slower-than-expected resumption at mines and inte

9 China thermal coal market faces 2-3 mth short squeeze due to coronavirus: Noble 2020-02-18

China's domestic thermal coal market faces a 2-3 month short squeeze as a rapidly spreading coronavirus outbreak curtails production more than demand, Noble Resources' chief coal analyst said on Febru

10 Russia Dec coal exports decline 1.53% YoY, customs data 2020-02-19

Russia posted a year-on-year decline of 1.53% in coal exports in December 2019, according to customs data, mainly dragged down by decreased buys from China. The country shipped a total 18

Scan to download sxcoal.com mobile APP

X