Coal sector trade unions opposing the dilution of the government stake in Coal India has urged the employees against participating in the ongoing five per cent offer for sale (OFS) meant for employees.
Coal sector trade unions opposing the dilution of the government stake in Coal India has urged the employees against participating in the ongoing five per cent offer for sale (OFS) meant for employees.
The OFS of five per cent or 99,00,196 shares to employees at Rs 254.22 after discount opened Monday and will remain open till November 15.
"We maintain our stand of opposing the dilution of stake by Coal India. We urge the employees not to subscribe to the shares," Citu backed union All India Coal Workers Federation general secretary B B Ramadandan told PTI.
Ramadandan said all trade unions are likely to meet end of the month for their next course of action.
The government had recently sold 3.19 per cent stake in Coal India.
In the IPO of 2010, CIL had received lacklustre response from its employees.
Meanwhile, Cost of sourcing coal for industry has skyrocketed with the premium being paid by sectors such as cement, steel or aluminium crossing 100% over prices paid by the power sector.
Diversion of coal meant for these private sectors to power plants continues forcing industry to buy costly coal from auctions where prices were more than double or about 102% of the notified prices paid by the power sector in September, according to data submitted by Coal India to the ministry.
The situation was much better in the previous year when the premium was only 67%.
Every year, Coal India supplies about 90% of its coal at notified prices to mostly power plants and specified other sectors while the balance 10% is sold via e-auctions which largely reflects current demand-supply scenario, or how badly the private sector need coal supplies.
During September 2.58 million tonne (mt) of coal was put for spot-e-auction at prices which, on average, was sold at 102% over notified prices.
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