Coal India may consider price hike if unable to contain operational costs

After a prolonged sluggish period, coal prices are currently hovering at around $91 a tonne

Faced with the burden of an additional cash outflow of at least Rs 5,600 crore every year on account of wage revision, Coal India may eventually hike coal prices to maintain its profit margin, which may happen in case the Maharatna company is not able to curtail its operating costs.

Although an immediate price hike isn't under consideration, senior company officials are of the view that they need to curtail operating short-term and mid-term costs like the closure of loss-making mines, offering voluntary retirement scheme to curtail direct employees, and opting for mine mechanisation.

"Eventually, if these don't help to maintain margins