Coal India to Be Hit by Wage-Hike

16 August 2011 | 07:09 Code : 20735 Geoscience events
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Irrespective of its 64% gain in first fiscal quarter, Coal India, the world’s largest coal...
 

Irrespective of its 64% gain in first fiscal quarter, Coal India, the world’s largest coal miner, fears its second quarter growth would not be in the tune of former. The reason of it is said to be the upcoming wage-hike in the company.Revealing the amount of the profit, Chairman NC Jha said the net profit is of Rs4, 143.92 crore. He further stated that last time also the wage-hike slowed down the process of growth, and this time also it is considered to be on the same track. The company officials are expected to receive the charter of demand from the workers on August 20 and they are determined to finish the process of negotiation b six months, as last year it took them 13 months to make the employees agree with 24% increase.In the meantime, Coal India is also having a word with the finance ministry to relax current guidelines for foreign acquisition of coal mines. Company wants ministry to give 12% waiver on internal rate of return norm for foreign mines and should make alterations in the list of miners to be acquired.Talking about another investment, officials told they have identified 20 washeries with a capacity of 111.1m-t per annum and first phase investment is calculated to be Rs 2, 400 crore.


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