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Coal India Ltd may revise its product prices during the April-June quarter to offset wage hike, said the Coal Secretary, Mr Alok Perti. He was speaking to reporters at CoalTrans India 2012.
In April, Coal India is expected to review the new Gross Calorific Value (GCV) based mechanism after assessing its March quarter performance.
Last month, Coal India had put off price hike under GCV mechanism, following protests from consumers in sectors such as power and cement. In the earlier Useful Heat Value (UHV) method, the pricing was decided on the ash and the moisture of coal. The coal major, which effected a 30 per cent wage hike to its 3.65 lakh employees last month, will incur an additional wage burden of Rs 6,500 crore.
Replying to a query, Mr Perti also said that there were no plans to buyback shares as of now. The Government owns 90 per cent stake in the coal major. He also said that the Government has so far not received any letter from the Children's Investment Fund Management, which has threatened legal action against CIL officials for failing to protect interest of minority shareholders.
The UK-based hedge fund, a shareholder of Coal India, had threatened to take legal action against board members of the coal major. The shares of Coal India ended 1.8 per cent higher on the BSE to close at Rs 342 on Tuesday.
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