Coal Pensioners Demand Dedicated Welfare Fund from Coal India Disinvestment Proceeds; Write to PM Modi – Indian PSU

The All India Coal Pensioners’ Association (AICPA) has urged Prime Minister Narendra Modi to create a dedicated pension and retired employees’ welfare fund using a portion of the proceeds generated from the disinvestment of Coal India Limited (CIL) and its subsidiaries.

In a representation to the Prime Minister, AICPA Convenor P. K. Singh Rathor highlighted the deteriorating financial condition of nearly five lakh retired coal employees and executives, alleging that thousands of pensioners are struggling to survive on extremely low fixed monthly pensions under the Coal Mines Pension Scheme (CMPS), 1998.

The association has sought the government’s intervention to ensure that a portion of the substantial revenue generated through the sale of government equity in Coal India and its subsidiaries is reserved exclusively for the welfare and pension security of retired coal employees.

Pensioners receive as little as ₹1,000 per month

Highlighting the plight of retired employees, AICPA said pensioners covered under CMPS-1998 receive fixed pensions without any provision for dearness relief or inflation-linked increases.

Those who retired before 2010 are among the worst affected, the association pointed out. It claimed that even some retired Directors and CMDs are receiving monthly pensions of less than ₹10,000, while approximately 1.5 lakh pensioners receive only around ₹1,000 per month.

The association expressed concern that the pension scheme has not undergone any meaningful upward revision for decades, despite provisions for periodic reviews every three years.

According to AICPA, the pension corpus has been left severely underfunded, exposing nearly five lakh retired coal employees and their families to financial distress.

Coal India disinvestment raises questions over pension security

In its representation, AICPA drew attention to the government’s ongoing disinvestment programme in Coal India and its subsidiaries.

Coal India’s disinvestment journey began in 2010 with its initial public offering (IPO), through which 10% government equity was sold. Subsequent stake sales have brought the government’s holding down to approximately 61%, according to the association.

The process has now extended to subsidiary companies, with equity sales involving Bharat Coking Coal Limited (BCCL) and further stake sales planned in Central Mine Planning and Design Institute Limited (CMPDIL), Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL).

While acknowledging that disinvestment is a broader economic policy decision taken in the public interest, AICPA argued that the employees who built these public sector assets should not be excluded from the benefits generated by their monetisation.

The association has demanded transparent disclosures of the total capital realised by the government through Coal India’s disinvestment since 2010, along with the expected proceeds from ongoing and proposed stake sales in its subsidiaries.

Demand for dedicated Coal Employees’ Pension Fund

The most significant demand raised by AICPA is the creation of a Dedicated Coal Employees’ Pension and Retired Employees’ Welfare Fund, financed through a portion of the proceeds from disinvestment in Coal India and its subsidiaries.

The proposed fund, according to the association, should be used exclusively to strengthen the pension corpus and provide inflation-linked pension revisions to retired coal employees.

“It is a matter of concern that around five lakh coal pensioners face severe financial distress because the Coal Mines Pension Scheme (CMPS-1998) has not seen meaningful upward revision for decades,” the association said in its representation.

AICPA argued that while the dilution of government equity in Coal India has generated substantial resources for the national exchequer, the pension fund of former employees continues to face a shortage of financial support.

Representation sent to key ministries

Apart from the Prime Minister, copies of the representation have been sent to the Union Finance Minister, Union Coal Minister, Cabinet Secretary, Secretaries of the Ministries of Finance and Coal, Secretary of the Department of Investment and Public Asset Management (DIPAM), Chairman of Coal India Limited and CMD of Singareni Collieries Company Limited (SCCL).

The association has appealed to the government to address the issue with urgency, emphasising that retired coal employees who contributed to India’s energy security and industrial growth deserve financial dignity and social security after retirement.

The demand brings the long-standing issue of CMPS-1998 pension inadequacy into focus at a time when the government is pursuing further equity dilution and restructuring of India’s coal sector public sector undertakings.