State-owned Coal India Ltd (CIL) trade unions on Tuesday went on strike and the coal production is expected to be hit by two million tonne worth about Rs 300 crore.

Trade unions have called the strike to oppose the government’s decision to allow 100 percent foreign direct investment (FDI) in the coal sector and coal infrastructure.

Also, the unions are opposing opening up of the coal sector for private companies to sell coal in the open market to bring in competition to coal India and increase coal availability.

“We are opposing the government’s move to allow 100 percent FDI in the coal sector which will impact jobs for the Coal India workers. We demand an increase in job creation within coal India and regularisation of contract workers. Workers are on strike to ensure there’s is no coal mining, transportation or despatch of coal from any of the coal India mines,” said All India Coal Workers' Federation general secretary DD Ramanandan.

In 2018, the union coal ministry allowed private companies participation in commercial mining of coal to increase production. In August this year, cabinet approved 100 percent FDI in coal mining and related infrastructure.

Speaking at an event, Pralhad Joshi, minister for coal and mines said, “Government is trying to negotiate with Coal India workers and hopes coal mining operations will be fine from tomorrow.”

Coal minister also highlighted the mandate given to him from the Prime Minister Narendra Modi is to double coal production and reduce coal imports as much as possible.

While SC Garg, power secretary, highlighted that there is something is very wrong the way India uses coal in the power economy, "Rs 5 lakh crore worth power plants in jeopardy due to financial stress. Most of the stress in the power sector is due to coal short supply. The way coal linkage is allocated to the power sector is if I may say is nonsense.”

Garg highlighted that the coal blocks allocated to the power sector can produce 290 million tonne per annum but are producing only 15-20 million tonne per annum. There is a need to expedite coal production and coal ministry should look at allocating big coal mines for the requirement of the few big power producers.