Newz Desk, Durgapur: Eastern Coalfields Limited (ECL) is set to withdraw its decades-old practice of providing free electricity to villages located around its mining areas, citing an annual financial loss of around ₹250 crore.
The state-owned coal mining company has already disconnected electricity supply to five villages as part of the first phase of the exercise. ECL is now preparing to disconnect power connections to 37 more villages, officials said. ECL had been supplying free electricity to 42 villages in and around its mining areas since the nationalisation of coal mines. The company now maintains that providing electricity to areas outside its own colonies and collieries is not part of its core responsibility and has placed the move in the context of mounting financial losses.
According to ECL, the free electricity supply is also being allegedly misused by some commercial operators. The company claims that some people have been using the electricity to run ice-cream manufacturing units, grill-making workshops and other commercial activities without paying for the power consumed.
ECL Chairman and Managing Director Satish Jha said the company incurs an annual loss of approximately ₹250 crore on electricity supplied outside its own colonies and collieries. “Our job is not to provide electricity services. If there is an accident involving the electricity we supply, who will take responsibility?” Jha said, while highlighting the alleged commercial misuse of the free power.
State power supply likely to replace ECL connection
ECL has said that discussions have been held with the West Bengal government regarding an alternative electricity supply arrangement for the affected villages. According to the company, ECL will disconnect its connections only after electricity supply through a state government agency is made available in these villages. The change would mean that residents who have so far received electricity free of cost from ECL would have to obtain power through the regular electricity distribution system and pay according to applicable tariffs.
The proposed move, however, has triggered opposition from trade unions, who argue that ECL has a social responsibility towards communities living close to its mines.
CITU-affiliated Colliery Mazdoor Sabha president G K Srivastava said there was an established understanding that settlements within five kilometres of a mining area would be provided with free water and electricity because mining activities significantly affect neighbouring communities. “ECL cannot simply walk away from that responsibility,” Srivastava said, adding that a major agitation would be launched against the decision. He argued that if electricity is being illegally used by individuals to operate commercial establishments, ECL should take action against those responsible instead of withdrawing the facility from entire villages.
ECL also plans eviction drive against quarter occupants
Alongside the electricity issue, ECL has announced plans to intensify its drive against unauthorised occupation of company quarters across the mining belt. The company reportedly has around 63,000 residential quarters, of which only around 18,000 are currently occupied by ECL employees. A large number of the remaining quarters are allegedly occupied by people who are not ECL employees, while several structures have become dilapidated. ECL has begun issuing notices for the demolition of dangerous and structurally unsafe quarters. The company plans to gradually remove unauthorised occupants from other quarters as well. Jha said several ECL quarters were in a dangerous condition and could pose a serious risk to residents and others in the event of a structural failure.
Unions oppose eviction plan too
The proposed eviction drive has also drawn criticism from trade unions. Srivastava said many settlements in the mining belt were established decades ago when people were brought from different areas and settled around the mines. Evicting them now simply on the grounds that the land belongs to ECL would be “inhuman”, he said. Hind Mazdoor Sabha (HMS) leader S K Pandey said the approach towards coal mining areas had changed over the years. “Earlier, the approach was to establish a colliery and contribute to the social and economic development of the surrounding area. Today, the focus appears to be on increasing profits,” Pandey said. With ECL seeking to reduce its financial burden and trade unions warning of protests, the proposed withdrawal of free electricity and the eviction drive are likely to become major flashpoints across the coal belt.
