Coal India's expenses are likely to shoot up by Rs. 5,500-6,000 crore every year, as the company has conceded to a 20 per cent wage hike apart from other benefits. This in turn, is likely to pull down the company's projected profitability by a minimum of nine per cent.
Projecting a boost in coal demand, sector analysts had projected a Rs 11,000-13,000 net profit for Coal India for the entire year, however, post the wage revision, the same has been downgraded to range between Rs. 9,000-10,000 crore.
Trade union sources, who participated in the four-day negotiation process in New Delhi, opined that
