Indian wage hike won't affect buyers: report

INDIA’s coal ministry has assured Coal India customers that the planned 25% wage increase for the company’s workers will not raise the cost of its coal.
Indian wage hike won't affect buyers: report Indian wage hike won't affect buyers: report Indian wage hike won't affect buyers: report Indian wage hike won't affect buyers: report Indian wage hike won't affect buyers: report

Courtesy Coal India

Lauren Barrett

The 25% wage hike is tipped to take effect from July and will extend for five years.

While price negotiations are yet to be finalised, local news service mydigitalfc reported India’s coal minister Sriprakash Jaiswal as saying customers should not expect an increase in the cost of coal.

“We do not expect any increase in coal price … we expect CIL to absorb increase in wages,” Jaiswal was quoted as saying.

Coal India increased wages by 24% in the previous five-year agreement.

Meanwhile, the news service said the ministry would review the company’s newly enforced gross calorific value price mechanism.

The news service said Coal India’s new mechanism for pricing on coal was between 30% and 60% higher than its earlier pricing.

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