By Shri Alavandar Venu Madhav, General Secretary, Singareni Retired Employees Welfare Association
Crores of workers of Public Sector Enterprises and various government departments are continuously fighting for reinstatement of the Old Pension Scheme. At the same time, lakhs of coal sector workers are fighting for an increase in the meagre pension which they are currently getting.
Any society cannot survive even for a minute without the working people, whether they work in factories, fields, construction sites or in providing various services. Natural justice demands that their well-being is taken care of even during their old age. Adequate remuneration in old age must be ensured whether as pension or in any other form to all the working people. This should be our unifying demand!
The coal mining industry plays a crucial role in India’s economic development. Millions of workers in this sector have dedicated their lives to providing energy and supporting industrial growth. However, the question of how secure their lives are after retirement still remains unanswered.
Evolution of the Pension System
The Coal Mines Provident Fund was introduced in 1948 to support workers, but it was limited to savings during service.
In 1971, the Family Pension Scheme was introduced, but it applied only to the families of deceased workers.
Even after the establishment of Coal India in 1975, a comprehensive old-age pension system was not available until 1998.
1998 Pension Scheme – A Ray of Hope
After continuous struggles by workers, the Coal Mines Pension Scheme was introduced in 1998.
This scheme provided a structured monthly pension system.
However, instead of creating a new fund, it relied on existing family pension funds, employee and employer contributions, and support from the Central Government.
Key Weaknesses
The major weakness of the scheme lies in low contributions:
Employee + Employer contribution: about 2.33%
Central Government contribution: only 1.16%
This has weakened the financial sustainability of the fund.
Current Situation
Today, pensioners of Coal India and Singareni Collieries are facing severe hardships:
- Monthly pension: only ₹1,000 to ₹3,000
- No Dearness Allowance (DA)
- No regular pension revision
- Rising medical expenses
- Delays in payments
Financial Deficit – A Serious Concern
According to the Central Government’s 2025–26 estimates:
- Annual income: approx. ₹5,600 crore
- Annual expenditure: approx. ₹6,400–₹6,500 crore
This means yearly expenditure exceeds income.
Further estimates indicate:
- Annual deficit: approx. ₹240 crore
- Total long-term deficit: approx. ₹26,000 crore
This signals a serious risk to the future sustainability of pension payments.
Urgent Reforms Needed
To strengthen the system:
- Increase coal levy from ₹20 to at least ₹100
- Provide a special financial package from the Central Government
- Fix minimum pension at ₹10,000
- Implement Dearness Allowance (DA)
- Increase contribution rates
A Social Responsibility
Coal miners have powered the nation.
Allowing them to struggle in old age is not just unfair—it is a failure of social responsibility.
Conclusion
Strengthening the Coal Mines Pension Scheme is an urgent necessity.
It is not only the responsibility of the government but also a moral obligation of the society.
“If the nation is powered by workers’ sweat,
their old age must be lived with dignity.”
“The lives of those who lit the nation must not remain in darkness.”