Coal India may be urged to raise prices next year to meet partially an increased wage bill. The government has decided to sign a new wage pact with Coal India employees on January 24.
On January 20, Union minister of state for coal Santosh Bagrodia said, "The revised wages for workmen and officers will put an additional burden of Rs 5,000 crore on Coal India."
While speaking on the sidelines of an energy seminar organised by the Indian Chamber of Commerce, the minister said, "Following this, Coal India may have to increase its prices. Any increase in coal prices will come in 2010."
After the gap of three and-a-half years, Coal India has increased prices by 10 per cent in December 2008.
The company had also proposed to peg the floor price under the e-auction mode at 40 per cent premium above the notified price at which Coal India supplies coal to power sector companies.
Last year in June, Bagrodia withdrew this premium and set the e-auction floor price back at the notified price. The eighth national wage settlement for Coal India employees will be effectual retrospectively from July 2006 for workmen and from January 2007 for officers.
Coal India has more than five lakh non-executive employees. Under the new wage agreement which has been agreed for five years, workmen will get a 24 per cent salary hike.
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