Nagpur: The contractors who had installed the quarrying equipment to the mining company after the negotiations with the Western Coalfields Limited (WCL) management came to an end without any agreement have stated that Rising diesel prices will now force them to stop working within a week.
Contractors fall under a federation of equipment contractors to hire. In these mines, machines are removing the soil to reach the coal seams.
He had already sent a notice to stop this work indefinitely from the date of November 1. If the increase in fuel rates was not compensated for by amending this formula. Notices were also sent to other subsidiaries of (CIL) Coal India Limited. Even if the strike happens “then there is a strong possibility of its impact on the production of coal all over India”. contractors said.
Meeting held at WCL Headquarters
A meeting was held at Western Coalfields Limited Headquarters on Monday, after which the contractors held another meeting to chalk out their strategy. It has been decided to organize a meeting of each of the Coal India Limited contractors on the date of 30 October and take the plans forward.
Lokesh Jain of the Nagpur district unit of the Sangh has said that the contractors are now facing this daily loss running into crores of rupees. And this is also because under the existing tender conditions, only up to 30% of the price hike of diesel is passed. This is insufficient due to such a sharp increase in prices and the margins of the contractors have been reduced. They are now heading towards a cash crunch and may be short of funds to buy fuel in several days. Because of this, the work will come to a complete halt.
At present, the price of diesel is Rs 105 per litre. Price escalation up to 30% is also allowed as per the tender conditions. However, in a letter submitted to the Chairman and Managing Director (CMD) of Western Coalfields Limited on Monday, it has been said that almost a 67 percent increase is due to diesel prices.