AITUC condemns 100 pc FDI in coal sector

The government's decision to allow 100 per cent foreign direct investment (FDI) in the coal sector is "retrograde" and not in the interest of the country, the All India Trade Union Congress (AITUC) said on Thursday. In a fresh round of FDI reforms, the government on Wednesday allowed 100 per cent foreign investment in coal mining and contract manufacturing and eased sourcing norms for single-brand retailers, among other measures.

"The Central Government has taken a decision to allow 100 per cent FDI in Coal Sector (on Wednesday). AITUC condemns this move as retrograde and not in the interest of the nation," AITUC said in a statement. It said this move will take the nation to pre-1971 conditions (coal sector was nationalised in 1971) when coal mining was being done in the most unscientific way, causing heavy casualties in human life as well as ecology.

Further, the government said that there is no guarantee that Forest Rights Act 2006 will be honoured, leaving the tribals at the mercy of coal magnates, it added. The AITUC appealed to all unions in the coal sector to resist this move and asked the government to immediately withdraw its decision.

As much as 100 per cent FDI under automatic route was allowed in coal and lignite mining for captive consumption in power projects, iron and steel and cement units. Now, the same had been allowed for sale of coal and mining, including associated processing infrastructure such as coal washery, crushing, coal handling, and separation (magnetic and non-magnetic).