New Delhi: The All India Coal Pensioners’ Association (AICPA) has urged Prime Minister Narendra Modi to establish a dedicated pension and welfare fund for retired coal employees, financed through a portion of the proceeds from the government’s disinvestment in Coal India Limited (CIL) and its subsidiaries.
In a representation to the Prime Minister, AICPA Convenor P. K. Singh Rathor highlighted the financial difficulties faced by nearly five lakh retired coal employees and executives. The association said thousands of pensioners are struggling to manage their expenses on fixed monthly pensions under the Coal Mines Pension Scheme (CMPS), 1998.
AICPA has sought the government’s intervention to ensure that a share of the revenue generated through the sale of government equity in Coal India and its subsidiaries is reserved for the pension security and welfare of former employees.
Pensioners Receive as Little as Rs 1,000 a Month
The association said CMPS-1998 does not provide for dearness relief or inflation-linked increases in pension. As a result, pensioners continue to receive fixed amounts despite rising living costs.
Those who retired before 2010 are among the worst affected, according to AICPA. It claimed that some former Directors and Chairmen-cum-Managing Directors (CMDs) receive monthly pensions of less than Rs 10,000, while around 1.5 lakh pensioners get only about Rs 1,000 a month.
The association also pointed out that the scheme has not undergone any meaningful upward revision for decades, despite provisions for reviews every three years.
AICPA said the pension corpus remains severely underfunded, leaving nearly five lakh retired employees and their families exposed to financial hardship.
Coal India Disinvestment Raises Pension Concerns
In its representation, AICPA referred to the government's disinvestment programme in Coal India and its subsidiaries. The process began in 2010 with the company's initial public offering (IPO), through which 10% of government equity was sold. Subsequent stake sales have reduced the government's holding to approximately 61%, the association said.
Disinvestment has since extended to subsidiary companies, including Bharat Coking Coal Limited (BCCL). Further stake sales are 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, AICPA argued that retired employees who helped build these public sector enterprises should also benefit from the value generated through the sale of government stakes.
The association has sought transparent disclosure of the total proceeds realised by the government from Coal India disinvestment since 2010. It has also asked for details of the expected revenue from ongoing and proposed stake sales in the subsidiaries.
Demand for Dedicated Coal Employees’ Pension Fund
AICPA's key demand 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 would be used exclusively to strengthen the pension corpus and support inflation-linked revisions for 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 for former employees continues to face a shortage of financial support.
Representation Sent to Key Ministries
Besides the Prime Minister, the association has sent copies of its representation 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).
AICPA has urged the government to take up the matter on priority, saying retired coal employees who contributed to India's energy security and industrial growth deserve financial dignity and social security after retirement.
The representation brings the adequacy of pensions under CMPS-1998 back into focus as the government continues its disinvestment programme and plans further equity sales in the coal sector.
