World’s largest mining company Coal India Limited on Tuesday said that it will reduce 5% in manpower every year for the next 5-10 years to reduce costs. Currently, the mining company has 2,72,445 employees since FY20, CIL stated in the earnings call a day after declaring its March quarter results.
The company also stated that it would close unviable mines. There are 158 underground mines that employ 43% of the workforce whereas contributes 5% of total production. “Action is being taken to close the unviable mines in CIL in a phased manner. Production from 11 such Underground Mines has already been suspended,” CIL further stated.
Under its cost control measure, the company also informed that for efficient operationalization of greenfield projects, CIL devised a transformative plan to engage MDO for 15 projects (10 OC and 5 UG) with a combined total targeted capacity of about 160 MTY. Out of the 15 projects, Work Order has been issued for 2 projects of 45 MTY.
Remaining projects are at various stages of tendering and approval of NIT. Currently, the Coal India stock at BSE trades 1.10% lower at ₹ 157.60 apiece.
CIL on Monday reported a consolidated net profit of ₹4,588.96 crore, a dip of 0.8%, in the quarter ended 31 March, 2021. The company had posted a profit of ₹4,655.76 crore in the year-ago period.
The company’s board has approved a final dividend of ₹3.50 per equity share of face value of ₹10 each for the financial year 2020-21, CIL said in a regulatory filing.