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Coal India warns it may need to cut output without a price hike

The world's largest coal producer is facing cost pressures from a looming rise in salaries and on higher prices of diesel used to power mine equipment.

Photo: Bloomberg
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Photo: Bloomberg

Rajesh Kumar Singh | Bloomberg
State-run miner Coal India Ltd. warned production of the fuel may fall, risking new threats to the nation’s energy supply, if the company isn’t able to raise prices.
 
The world’s largest coal producer is facing cost pressures from a looming rise in salaries and on higher prices of diesel used to power mine equipment. Some of the company’s units are finding it “difficult to survive without a price hike,” Chairman Pramod Agrawal said on a call with analysts.

Raising coal prices included in long-term supply agreements would require backing of the government, which weighs the impact of higher rates on

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First Published: Feb 18 2022 | 12:29 PM IST

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