Union finance minister Yashwant Sinha on Wednesday told The Financial Express: "The proposal is under consideration of the cabinet and we are trying with utmost sincerity. But you know how difficult it is now-a-days to pass a bill in parliament."

Privatisation of the coal sector -- the idea was first mooted in the Congress regime -- was expected to be launched in March last year. But due to the bye-elections it was deferred. The Union government has to take a decision on the matter soon as the World Bank with effect from June 17, 1998 has already disbursed $530 million to Coal India under the Coal Sector Rehabilitation Project (CSRP). The disbursement of the loan will start from 2003 and continue in phases for 15 years.

"The delay in the passage of the bill may create fears among the coal ministry officials that the World Bank may recall the loan," saida former Coal India official.

The Exim Bank of Japan will also disburse a similar amount to the Coal sector for investment in at least 24 mines of the Central Coalfields Ltd, Western Coalfields, etc.

Sources in the Coal India said: "The three subsidiaries of Coal India -- Central Coalfields Ltd (CCL), Bharat Coking Coal Ltd (BCCL) and the Eastern Coalfields Ltd (ECL) are incurring losses and the recession-hit steel sector, power sector and the cement sector owe them as much as Rs 4000 crore at the moment."

The sources said that "even if the Union government decides to privatise the mines, who will buy them with liabilities. I think no buyer will go in for the mined areas. They may only show interest in the virgin patches."The Indian National Trade Union Congress (Intuc) is vehemently opposing the privatisation move of the Centre, not realising that it was the Congress government which proposed the idea for the first time. Intuc vice-president Rajendra Prasad Singh, also an MLA in the Bihar Assembly,believes that any such move of the Centre will be vehemently opposed as most of the workers in the mines sector will be rendered jobless.

"The government should not buckle under the pressures of the World Bank. This will open the doors for the MNCs to enter India's volatile Coal market," he said.

"We command the support of more than 4,30,000 workers and we will vehemently oppose any such move by the Centre," Singh.