Coal India says jobs protest losing it 200,000 T of output a day

BHUBANESWAR, India Fri Nov 29, 2013 7:46pm IST

Labourers load coal on trucks at Bari Brahamina in Jammu May 20, 2010. REUTERS/Mukesh Gupta/Files

Labourers load coal on trucks at Bari Brahamina in Jammu May 20, 2010.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

Stocks

   

BHUBANESWAR, India (Reuters) - Workers angered at losing their jobs shut a major coal field of Coal India Ltd (COAL.NS) on Friday, leading to the loss of 200,000 tonnes per day of output and causing alarm among power producers already facing tight supply, the company said.

The Talcher field, comprising seven open cast mines, is run by the Mahanadi Coalfields unit, which last fiscal year accounted for nearly a quarter of output totalling 452 million tonnes from state-owned Coal India, the world's biggest coal producer.

Mahanadi Coalfields supplies power companies such as NTPC Ltd (NTPC.NS) and aluminium maker National Aluminium Co Ltd (NALU.NS).

"Some power companies we supply to have already sent me panic text messages," Mahanadi Coalfields Chairman A.N. Sahay said. "The situation is very critical and I don't know when we will be able to resume production."

Sahay said a new contractor had taken over coal loading and other activities and was using new workers, leading to violent protests by those hired by the previous contractor.

The aggrieved workers disrupted operations at two Mahanadi Coalfields railway sidings on October 8.

The trouble intensified on Friday when about a thousand people led by a local legislator clashed with some 300 workers employed by the new contractor and forcibly shut the mines, Superintendent of Police Narasimha Bhola told Reuters.

Coal India accounts for more than 80 per cent of the country's total coal output. Its inability to raise output in line with demand means India has become the third largest importer of coal despite sitting on what BP has estimated to be the world's fifth-largest reserves.

(Writing by Krishna N Das; Editing by Anthony Barker)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Article 

Indians in Iraq

Indians in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Banking Sector

Banking Sector

After record deal, more India bank takeovers on cards  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Cricket Tragedy

Cricket Tragedy

Clarke breaks down giving heartfelt Hughes tribute  Full Article 

Nigeria Violence

Nigeria Violence

Bombs, gunfire kill 81 at crowded mosque in Nigeria's Kano  Full Article 

Movie Review

Movie Review

D’Silva's “Ungli” just skims the surface  Full Article | Related Story 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage