Coal India officers to go on strike; output to be hit

NEW DELHI Wed Mar 12, 2014 2:44pm IST

A worker sits on a truck being loaded with coal at a railway coal yard on the outskirts of Ahmedabad November 25, 2013. REUTERS/Amit Dave/Files

A worker sits on a truck being loaded with coal at a railway coal yard on the outskirts of Ahmedabad November 25, 2013.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Coal India(COAL.NS) said its officers will go on a three-day strike from Thursday to demand for a settlement of pay-related issues, in a move that could cut some of its 1.5 million tonnes-per-day output and tighten domestic supplies.

The state-owned company, the world's No. 1 coal miner that accounts for about 80 percent of India's output, frequently falls short of its output target due to employee strikes, delays in getting approvals to expand mines and other issues.

As a result, India is the world's third largest importer of coal despite sitting on the fifth-largest reserve.

"Coal Mines officers' Association of India has served a strike notice ... against non-finalization of performance related pay, new pension scheme and other demands," the company said in a statement to the Bombay Stock Exchange on Wednesday.

"Efforts are being made to reconcile the same."

Though Coal India's production peaks in March, not all of its output will be hit as only 19,000 of the total 349,000 employees are of officer rank, two company officials said.

"There will of course be some amount of dent but we do not expect it to be a total halt of mining across the company," said one of the officials, who declined to be named as he is not authorised to speak to media.

A Coal Ministry spokesman could not be immediately reached for a comment.

In the eleven months to February, Coal India produced 409.13 million tonnes, or 95 percent of its target for the period. A labour protest in December had cut off supply of about 200,000 tonnes per day for almost a week, mostly to power generators.

Chairman S Narsing Rao told Reuters last month that the company expected to produce about 475 million tonnes in the fiscal year ending March 31 and raise it by 30 percent next year.

India's coal imports rose 21 percent to 152 million tonnes in 2013 calendar year, according to research firm OreTeam.

Coal India shares have shed more than 10 percent so far this year, extending last year's losses of 18 percent.

(Reporting by Krishna N Das; Editing by Himani Sarkar)

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

Market Eye

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Cipla Shares

Cipla Shares

Cipla jumps after key generic launch.  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit.  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks.  Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter.  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past.  Full Article 

Reuters India Mobile

Reuters India Mobile

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