Protests and threats from trade union forced the government to change its decision about stake sale in Coal India. The government has now come to an agreement with the union for sale of 5% stake instead of 10% which was decided earlier. The stake sale was planned by the government in order to raise around Rs 20,000 crore.
The government consulted with the trade union and has decided to sell 5% of stake in the open market and the remaining stake would be offered through share buyback options.
Coal Minister Sriprakash Jaiswal said, “This was our third meeting with the trade unions. On the advice of trade unions we have decided that instead of 10% there would be a disinvestment of 5% (in Coal India). For the remaining 5%, the government will devise some other mechanism. The trade unions are also ready for this.”
The other options were however not much explained by the minister. He assured about the disinvestment in CIL to occur soon. Further meetings are still to be arranged to discuss on other issues with the trade union.
The meetings and change of decision about stake sale by the government are a result of threats from the union who threatened of going on strike if they sell the stakes. However, now there is no such fear of protest or threats from the trade union or the labor.
Government presently owns about 90% of the total stake in CIL whose cash value is about Rs 188,227 crore. CIL currently holds Rs 60,000 crore cash in their books.