Mining major Coal India has flagged an urgent need for a price hike of the dry fuel, contending that without which, “certain subsidiaries” would find it “difficult to survive”, company sources said on Friday.
It is also trying to bring stakeholders on board to build a consensus for hiking prices, they said.
In an effort to tide over inflationary pressure, the miner will likely raise prices after the assembly elections in five states, including Uttar Pradesh, in March, the sources said.
“Every day is critical for me. A price hike has become very urgent. For certain subsidiaries, survival depends on it,” Coal India Chairman Pramod Agrawal is understood to have told investors on Thursday, they said.
Advertisement
Agrawal, however, did not disclose the name of the subsidiaries. Global coal prices have been on the higher side, which has led to greater demand for dry fuel from domestic sources.
He also said wage negotiations are expected to be completed in 2022-23.
The mining behemoth is facing huge cost pressure from proposed wage hikes and fuel costs, the sources said. In the second quarter of the current fiscal, higher diesel prices had resulted in cost inflation by around Rs 700 crore, the chairman had said earlier.
Just one email a week