Narrating the overall situation in ECL, Basu wrote: "I hope, you would kindly appreciate the situation and have steps taken so that ECL is directed not to implement the decision to close down the mines until the whole revival programme is discussed at the level of coal ministry with all concerned agencies including the trade unions and the state governments. I shall be grateful for your personal intervention on this important issue." Basu wrote that he was "extremely perturbed" that ECL had decided to close down six of its areas -- five in West Bengal and one in Bihar -- comprising 64 mines.

"The adverse consequences of such a drastic decision cannot be overemphasised," he wrote and added that this measure would not only throw more than 71,000 workers out ofemployment but also severely hit the economy of the whole region. ECL had appointed ICICI Consulting to identify and suggest various measures to improve the productivity of its operations and the overall bankability of the company. The mines proposed to be closed down by ECL had been identified by the consultants as those with `difficult working conditions'.

"Nowhere in their report has the closing down of the mines been recommended," Basu wrote and added, "in fact, they have clearly expressed the view that phasing out of unviable mines is a wider issue encompassing socio-economic concerns as the manpower associated with these mines is very large." The report indicates that ICICI is in the process of appointing international mining experts to explore any feasible technical improvements which can enhance the productivity of mines. "One, therefore, fails to understand as to what actually prompted the ECL board to decide on this extreme step of closing down 64 mines altogether overriding the suggestions ofICICI," Basu wrote.

He added, "This action has taken me completely by surprise. Earlier this year, ECL had suspended operations in six mines. I held discussions with the representatives of CIL/ECL and subsequently through bi-partite discussions between the trade unions and the management an understanding was reached. "This led to the reopening of one of the six mines on September 3, 1998. I expected that the remaining five mines would gradually be reopened through the same exercise. However, ECL has chosen to close as many as 64 mines."