DoD proposes stiffer labour norms for mining PSUs

NEW DELHI: The Disinvestment Department has proposed that PSUs involved in mining ores should qualify for ''natural asset'' status while imposing additional norms concerning employment of labour.
As per the draft guidelines submitted to the Finance Ministry for approval, DoD has suggested that only those PSUs engaged in mining for ores should be covered under the guidelines proposed to be finalised by the government, official sources said.
The draft guidelines also state that the government is considering imposing further conditions on new owners with regard to engaging labour from backward areas.
The department is in favour of tighter labour conditions for such companies as mining of ore is a labour intensive process and few alternative employment opportunities prevailing in remote areas.
The guidelines form part of the sops announced by Disinvestment Minister Arun Shourie on December 9 as part of a package to push forward the privatisation process, which was stalled in the backdrop of resistance from administrative ministries.
Sources said the guidelines would also take care of problems faced by mining companies with regard to mining leases as in the case of Balco.
The department aims to tide over these problems by specifying a minimum tenure for such leases which would lend a degree of comfort to prospective buyers.