Coal India (CIL), the world’s largest coal mining company, said on Tuesday that it will reduce workers by 5 per cent every year for the next 5-10 years to reduce costs. At present the number of workers of the company is around 2,72,000. A day after declaring the March quarter results, the company said that it is also preparing to close the loss-making mines.
Coal India has 158 underground mines and these employ 43 per cent of the company’s workforce. These mines contribute about 5 percent of its total production.
The company said that the damaged mines are being closed in a phased manner. Production has already been stopped from 11 such underground mines.
To control the cost, the company will focus on greenfield projects.
CIL’s consolidated net profit declined 0.8 per cent to Rs 4,588.96 crore for the quarter ended March. In the corresponding quarter of the previous year, the company’s profit was Rs 4,655.76 crore.
The company’s board has allowed a final dividend of Rs 3.50 per equity share for the previous financial year.
The company has been facing difficulties in increasing production since last few years and due to this it is trying to reduce cost and improve production.
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