AIACE Holds Meeting With Top Management Of Coal India Limited

Meeting held between Chairman, Coal India Limited and Principal General Secretary of AIACE

A meeting was held on Monday, between Shri P.M. Prasad, Chairman, Coal India Limited and Shri P.K. Singh Rathor, Principal General Secretary of AIACE, for the resolution of pay conflict between executives and non-executives of Coal India Limited and its subsidiaries, after implementation of of NCWA XI and inclusion of AIACE members in pay conflict resolution committee. All the problems discussed in the meeting and also the suggestions given are given below for the benefit of the viewers of

Problems of Executives discussed with Chairman, CIL on 16th October, 2023


a. The problem Pay conflict between executives and wage board employees due to implementation of NCWA-XI

b. Suggestions

Formation of Pay Conflict Resolution Committee at CIL and subsidiary level which should examine and recommend measures to compensate executives to resolve the pay-conflict issue on one to one basis. It is suggested that Pay conflict should be resolved fully on case to case basis and avoid ad-hoc measure. (Ref. -1)


a. The problem At times, we find resentment among non-executives as they are deprived of NPS, PRP and other perquisites like executives. (Ref. -2)

b. Suggestions

Allowing NPS, PRP and other perquisites like executives may add to harmony among various section of manpower in Coal India.


a. Basic need of retirees

(i) Cashless Treatment in empanelled hospitals for Both Indoor (IPD) and Outdoor (OPD)

(ii) Hassle-free Reimbursement of Both IPD and OPD treatment which can be availed in any govt./ NABL approved Hospital

(iii) A 24×7 Call centre with Phone and e-mail address to assist retirees to accept Intimation and facilitate cashless claims

(iv) Timely settlement of payment to Beneficiary and Hospital

b. Suggestions

(i) Like coal production, Outsourcing the Bill Processing to a recognised agency like UTIISL etc. and utilise the existing manpower in productive work in core field (Ref.-3)

(ii) Engaging a service provider for a centralised 24×7 call centre and treatment approval (Ref-4)

(iii) Need to allow treatment in NABH Hospitals and Laboratories irrespective of seeking prior/post approval (Ref -5 & 9)

(iv) For hasslefree treatment, distribution of QR-enabled Smart Cards for all CPMRSE Beneficiaries (Ref-6)

(v) Appointment of Doctors (specialist and GDMOs) which will encourage retirees to go for company hospitals. (Ref-7)

(vi) Request for proper measures as Hospitals unilaterally opt out of empanelment and other empanelled hospitals not extending CGHS Rates under CPRMSE (Ref-8)

(vii) In view of increasing cost and increase in CGHS rates, Request to enhance (a) Annual Domiciliary reimbursement to Rs 100,000 and (b) Whole life limit to Rs 50 lakhs (Ref-9 & 10)

(viii) Inclusion of Ayush Treatment under CPRMSE /CPRMSNE which is otherwise allowed in MAR for working executives/employees (Ref-11)


a. Preamble to the problem in pension revision

(i) Retirees are the worst sufferers due to CMPS-1998 pension, once fixed, has remained constant due to various reasons due to poor Fund management pointed out by CAG/PAC.

(ii) Fund accumulated in the pension fund could not be invested in Instrument of high return. Yearly deficit in fund was managed by diverting CMPF subscribers’ contributions to pension fund.

(iii) The actuarial valuation of Pension fund has been done only four times in the years 2001, 2005, 2012 & 2013 with no fruitful implementation of its recommendations ever.

(iv) the BoT of CMPFO had revised the rate of contribution to 14 per cent from the erstwhile 4.91 per cent with effect from 1.10.2017 vide GSR No. 540 (E) dated 08.06.2018 to resolve the issue of deficit in the Pension Fund Account.

(v) The Ministry/ Management stated to PAC that, as a result of revision of pension contribution, Pension Fund had a surplus of Rs.308.41 crore in 2018-19.

(vi) Subsequently, on the advice of Coal ministry, CMPFO had requested the coal companies to voluntary levy Rs.10/- per tonne of coal production which strengthened the depleting pension fund. The proposal was accepted by Coal India Ltd. (CIL) in middle of the year 2020.

(vii) Later, BoT agreed to send recommendations to the Ministry of Coal for welfare cess to be revised to Rs. 15 per tonne.

b. Suggestions

The suggestions, supported by detailed calculations, are as given in Ref-12. Since it is difficult to undo the past deeds and undesirable to find the faulty fund managers who led to Fund mismanagement, the only way out seems to be levy of welfare cess. A modest levy of Rs 10 per ton, as of now, can be suitably enhanced and kept voluntary in its present form. This will allow stability as well as enhancement of pension fund for years to come without any burden on the part of Government. Even, Delhi Electricity Regularity Commission (DERC) levies a pension surcharge of around 5-8% to pay towards pension of erstwhile Delhi Vidyut Board (DVB) employees.

Unlike other industries, coal mining is an industry where present growth is largely dependent on past conservation and efforts exerted by its erstwhile workforce. Hence, it is morally correct on part of Coal India to continue to levy welfare cess for survival of its retirees whose contribution to the present production cannot be denied. It is highly recommended that in place of frequent enhancement of welfare cess, let it be linked as a percentage (may be 1% or lower) of selling price of coal.

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