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Mamata writes to PM Modi, says 100% FDI in coal sector contradicts spirit of self-reliance
The decision on allowing 100 per cent FDI in coal sector was taken by the Centre in 2019.
West Bengal chief minister Mamata Banerjee has opposed 100 per cent foreign direct investment (FDI) in the coal sector, saying it contradicts the spirit of self reliance and comes at a time when investors across the world are showing interest in renewable energy.
On Thursday, Banerjee expressed her reservations in a letter to Prime Minister Narendra Modi. She also said that Coal India Limited should not shift the desk offices of four of its subsidiary companies from Kolkata to their headquarters in other regions.
Referring to the new policy announced by the Centre on allowing 100 % FDI in coal mining, processing and sale, Banerjee wrote: “This policy can neither bring FDI nor can it bring technologies or knowhow which we are unable to access today. The recent trend and empirical evidences clearly showcase the interest of global investors more in renewable energy projects as comparable to coal mining projects. In fact research suggests about 100 global financial institutions have divested their thermal coal investments. Therefore FDI in thermal coal is a far cry.”
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The decision on allowing 100 per cent FDI in coal sector was taken by the Centre in 2019.
“At a time when the world’s largest coal mining company Coal India Limited (CIL) is producing 80% of our coal with Profit Before Tax of Rs 27,000 crore (2018-19) and holding a reserve of Rs 31,000 crore the decision of the Central government to relax FDI restrictions demeans the capability of CIL,” wrote Banerjee.
“Moreover allowing 100% FDI in coal for MNCs will carry a wrong message as it would contradict the very essence of Atmanirbhar Bharat and would also kill the vision of self-reliant policy that we have been following since the beginning,” the letter says.
“Further it is observed that in many under-developed and developed countries there has been continuous resistance by the locals against any effort of their possible exploitation. As a result it would create a great impact on the domestic economy in the long run,” observed Banerjee.
“As regards possibility of multinational corporations bringing appropriate new technologies in the thermal coal sector it may be mentioned that relevant technologies are universally available in this sector and our companies are already using them widely,” she said.
“The recent abrupt decision to shift the desk offices of four of its subsidiary companies namely Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), South Eastern Coalfields Limited (SECL) and Mahanadi Coalfields Limited (MCL) from Kolkata to their respective headquarters in other areas will be extremely detrimental to the interest of all stakeholders of coal sector including the employees,” the letter said.
Referring to the restriction of movement because of the Covid-19 pandemic, Banerjee said the decision of CIL “to shift these offices by June 30 is not humane and may endanger the innocent lives of its large number of employees as well as their family members.”
“The contractual employees residing in or near Kolkata will lose their livelihood,” she added. “The location of the offices of all the four subsidiaries in the same city acts as an aid in better coordination among them and even with the CIL headquarters in Kolkata. The decision to shift them from the present strategic centre and commercial hub to other areas will have an adverse effect on our economy,” the letter said.
“I would therefore request you to kindly reconsider allowing 100% FDI in coal sector and strongly urge your kind intervention or advising the Ministry of Coal not to go ahead with the decision of CIL to wind up their subordinate offices in Kolkata,” the letter said.
The Bharatiya Janata Party reacted sharply to Banerjee’s letter and said shifting the desk offices of the four CIL subsidiaries is necessary to save them from bad work culture.
“The FDI in coal sector will benefit West Bengal and the state government the most. But work culture in the state has touched the bottom of the pit. All offices have become centres of politics. Nobody works here. As a result, the Centre has decided to shift some of the offices from Kolkata. The decision was taken long ago but local parties moved the Centre and stalled it. There has been no change in work culture since then. As a result, the coal companies are falling sick,” said BJP national secretary Rahul Sinha.
“The CM is free to write letters but instead of that she should take an interest in reviving the work culture in Bengal. Had she done this then not just BCCL but many private companies would have stayed here instead of shifting to other states. The trend started during the Left regime and TMC is taking it to its finale,” said Sinha.
