Coal India Warns Price Hike Is Inevitable to Combat Higher Costs
- Price increase plan has been delayed by coal crisis: chairman
- State-run company is facing higher diesel and salary costs
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Coal India Ltd., the world’s largest producer of the fuel, said rising costs mean it’s “inevitable” that it will be forced to hike prices of supplies in long-term deals to protect profitability.
The state-run company is facing pressure from high diesel prices and an increase in salaries of employees due retroactively from July. The higher costs threaten to eat into investor returns and potentially hinder its investment in mines and logistics infrastructure.