CIL and SECL are working against the development of Chhattisgarh: INTUC

New Delhi, Feb 6 (IANS) The Chhattisgarh unit of INTUC has written to Prime Minister Narendra Modi highlighting the adverse effects faced by industries located in Chhattisgarh due to the supply of coal outside the state by Southeastern Coalfield Limited, a subsidiary company of Coal India Limited.

Sanjay Kumar Singh, President, State Branch, INTUC, Chhattisgarh in the letter to the PM said SECL is the biggest subsidiary company of Coal India Limited which produces approximately 165 million tons of coal every year. The coal produced by SECL is supplied to the industries situated in the state of Chhattisgarh and outside the state as well.

"In the last 01 years, due to insensitive and ineffective management by SECL, there has been a continuous reduction in the supply of coal to the industries located within the state. This has negatively impacted the industries and it appears that the interests of the state of Chhattisgarh are being deliberately ignored by SECL. There is no one to take arbitrariness and CIL &SECL are working against the development of Chhattisgarh state," the letter said.

Chhattisgarh accounts for 18 per cent (about 56 billion tonnes) of the country's total coal reserves. In the state of Chhattisgarh, there are more than 250 Captive Power Plants that require 32 million tons of coal every year for their smooth operation which constitutes only 19% of the coal being produced by SECL.

SECL's annual production target is 165 million tonnes and 25 per cent of the total coal production of the region is produced in the state.

At present, the Captive Power Plant of Chhattisgarh is getting only 40 per cent of the coal produced by SECL while the rest 60 per cent is being sent out of the state.

In the state of Chhattisgarh, as per the contract, SECL is required to provide 65 million tonnes of coal to the non-power sector annually.

In the month of October 2021, the contract between the non-power sector and SECL lapsed. But the execution of the new contract of Tranche-5 is still pending, the letter said.

The Non-power sector of Chhattisgarh was given an assurance that after the end of the agreement, the coal shall be provided to the non-power sector through the auction of tranche-5 Coal.

From the 65 million tons of coal produced annually, 50 lakh tons per month of coal was to be provided to the non-power sector in the state of Chhattisgarh through auction. However due to mismanagement of SECL in the last 4 months i.e., from October 2021 to January 2022, only 30 lakh tons per month of coal has been auctioned.

Based on the above-stated statistics, it can be said that the thermal power plant does not have enough coal reserves as per the requirement. Even after this crisis, the SECL is providing coal to other states which are very disappointing, the letter said.

Chhattisgarh INTUC (Indian National Trade Union Congress) has asked the Government of India to immediately instruct SECL to provide enough Coal as per the requirement to the industries located within the state of Chhattisgarh and take such steps where SECL gives priority to Captive power plants based in the state of Chhattisgarh, thereby safeguarding the interest of people employed in these sectors.

In a situation where the above-mentioned demands are not met immediately, the Power plant may shut down leading to unemployment of thousands of workers that will give rise to economical & social unrest leading to IR (Industrial relation) issue which will have repercussions on the economy of the country, INTUC said.