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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Drug Pricing

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Reuters India Mobile

Reuters India Mobile

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