SECL’s coal production is expected to decline by some margin because of the dispute between contractor and labours.
As per sources, the conflict regarding working hours and wages between contractor and labors got worsen which had forced labours to go on a two days strike in SECL’s Gevra and Kusmunda mines. The strike went on from 16 Feb to 18 Feb’19.
After that, the strike was called off following negotiation held between the two parties by the SECL officials.
Primary sources have estimated the output from the two mines-Gevra and Kusmunda, to fall around 30% following the strike activity. Consequently, the loss of coal production was projected around 50,000-65,000/MT from these mines on daily basis.
Gevra and Kusmunda mines are major coal producing projects of SECL. Together they have contributed around 48% of the SECL’s total coal production in FY17, as per the data provided on the company’s website.
SECL, being the largest coal producing subsidiary of CIL, is responsible for achieving its production goal to meet the rising demand. Apart from having its own manpower strength, the company also outsources contractors to carry out mining works.
Hence, in order to achieve the desired production goal, proper management of contractor firm is a region of utmost importance for SECL.
As a matter of fact SECL’s coal production has been falling on the y-o-y basis for the last two months (Dec’18 and Jan’19). However, the company has registered a growth of 7.3% to 124.33 MnT in total production attained during the first 10 months of FY19 (Apr’18-Jan’19).
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