Centre of Indian Trade Unions condemns the retrograde decision of the Govt at the centre to promulgate Ordinance to amend further the Mines & Mineral Development (Development & Regulation) Act and Coal Mines (Special Provisions ) Act (MMDR Act and CMSP Act) with the purpose of ending the very concept of captive mining of coal to meet the raw materials need of certain crucial industries like steel, power, aluminum, fertilizers etc for which coal is an essential raw material, as reported by media.

Such a decision will be disastrous for the concerned industries which are the backbone of the national economy. Enactment of both the Acts in the first tenure of the Narendra Modi Govt, facilitating aggressive privatization of the entire mining sector and allowing commercial mining of coals even by captive mines were by themselves a retrograde decision damaging the basic interests of the national economy.

Amending both the Acts further removing totally the restriction of end use relating to raw material requirements of vital industries, of these precious natural resources like coal, iron-ore etc for private players, both foreign and domestic bidding for the allocations of mine-blocks will convert these natural resources virtually and wholly into the items for trade and commerce including exports, ignoring their essential necessity as raw material for the core and strategic sector industries like power, steel, aluminum, fertilizers etc. Such a decision is also going to hit the economic viability of the public sector Coal India Ltd in the background of free entry of 100 per cent FDI in commercial mining of coal. The new coal bearing areas identified through research and exploration process by CMPDIL and Geological Survey will flow more to the private sector players depriving the Coal India Ltd from continuing replenishment of its exhausted mines.

CITU denounces such destructive decision of the Govt which is going to cast fatal impact for the industries wholly depending on coal as raw material. This decision, given the trend and destructive mindset of the Govt, is going to be replicated for iron-ore mines also. Excuses being made by the Govt that this decision will reduce coal import is totally untenable and illusory. Rather this is going to expand the grip and control of foreign players with Indian private contractors as their junior partners, on the country’s vital mineral resources, much to the detriment of our national interests.

CITU calls upon the working class and democratic people to oppose and resist such destructive move of the Govt through Ordinance route. United struggle to combat this disastrous move both at industry and national level is the way before us.  

Issued by
(Tapan Sen)
General Secretary

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