Coal workers will suffer financial loss due to reduction of interest on provident fund and write off of investment in a private finance company

 

Report received from Singareni Collieries Workers Union (AITUC)

 

Coal Mines Provident Fund (CMPF) Board of Trustees have once again reduced the PF rate of Coal India employees. The PF rate has been reduced from 8.5 percent to 8.3 percent this year. Coal workers will suffer financial loss due to loss of interest on PF.

On the other hand, an amount of Rs 727.67 crore of Dewan Housing Finance Corporation Limited has been waived amid protests. CMPF had invested an amount of Rs 1300 crore in DHFL. Of this amount, Rs 727.67 crore has been waived. The board has made this concession to the company due to non-deposit of balance amount for many years.

On behalf of the union, board member and AITUC president Ramendra Kumar opposed it. Said that they are worried about the CMPF fund. In such a situation, it is wrong to forgive such a huge amount. The decision was taken in the online meeting held on Thursday. Chairman of the Board and Secretary Coal Dr. Anil Jain presided over the meeting.

After the meeting, CMPF Commissioner Animesh Bharti informed that it was decided that CMPF will pay 8.3 percent interest rate for 2021-22. After the resolution is passed, it will be sent to the Finance Ministry for final decision.

It was also decided that CMPF would invest 10 per cent of its deposits in equity funds. The total capital in CMPF is one lakh four thousand crores rupees. To strengthen the pension, the proposal to increase the amount from Rs.10 to Rs.25 per tonne from coal companies was considered.

It was decided to take up this proposal in the next meeting. There is a shortfall of about Rs 47 thousand crore to run the pension for a long time. At present, there are only 3.67 lakh members while the number of pensioners has gone up to 5.5 lakh. Assessment is being done regarding the capital deposited in the pension head. The committee has been given responsibility for this.

The issue of shifting the Camp Commissioner’s office of CMPF to Ranchi’s CCL headquarters arose. The management was ordered to shift in January itself. The Coal Secretary said to take initiative on this immediately. Coal companies were given the responsibility of making contract workers working in coal companies as CMPF members.

 

 

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