Coal India dips on production concerns

Coal workers had joined the strike to pitch for their agenda that includes opposition to any further stake sale in Coal India

Shares of Coal India are trading lower by 1.4% at Rs 340 in an otherwise firm market after a majority of nearly 4 lakh coal workers across the country joined the strike yesterday called by trade unions, affecting 50% of the about 1.7 million tonne (MT) day's production.

Coal workers across the nation joined the nationwide strike on the call of major trade unions like INTUC, AITUC and CITU to pitch for their agenda that includes opposition to any further stake sale in Coal India.

"About 50% of the production has been hit as in most of the mines there is attendance by 50% workers," Coal India director personnel, R Mohan Das commented on the situation.

 

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Previously, the government decided to sell 10% stake in Coal India through a public offer, which could fetch over Rs 20,000 crore to the exchequer.

Meanwhile, Coal India recorded an output of 36.21 million tonnes (MT) in August, missing the target by 3.82%. The company's production target for August was 37.65 million tonnes, CIL said in a filing.

The stock opened at Rs 347.90 and touched a low of Rs 339.50 on the BSE.