KOLKATA (miningweekly.com) – Indian major Coal India Limited (CIL) is facing fresh threats of strikes next month as the Indian government pushed for the disinvestment of its holding in the mining company to private investors.

In the wake of a previous strike threat by CIL workers, the government had backtracked on its plans of a 10% equity disinvestment and instead proposed a 5% disinvestment to investors and another 5% equity in a buy-back by CIL.

At present, the government holds 90% equity in the coal miner, which accounts for 80% of domestic coal supply.

However, barring one trade union, the government’s series of talks had failed to bring around worker representative bodies, which would be meeting this month to plan the strike.

“The three main issues we are protesting are disinvestment, restructuring and possible break-up of CIL as holding company of coal mining operative entities, and violation of labour laws for contract workers,” Indian Mine Workers Federation secretary Ramendra Kumar was quoted a saying in the local media.

“We shall be meeting on November 16 to decide on the strike,” he said.

Since July, the Coal Ministry has held several rounds of negotiations with trade unions operating in CIL and representing over 357 000 workers, and pruned the disinvestment from 10% to 5%.

But barring the Indian National Trade Unions Congress - a Congress party ally, leader in the federal coalition government - none of the other trade unions have fallen in line with the government’s plans.

According to an official in the Coal Ministry, the government, which earlier had been soft-pedaling CIL disinvestment to avoid a strike when the country was facing a coal shortage, was compelled to go ahead with it in order to meet a target of mopping up funds and keeping the fiscal deficit in check as it had committed to do in the national budget for the current fiscal year.

The Indian government had planned to raise $9-billion through disinvestment of its equity holding in various government-owned companies, including CIL, but had been able to raise only about $214-million so far in the current year.