Nagpur: The implementation of Eighth National Coal Wage Agreement (NCWA) has drastically cut the overall profit of public sector undertaking Mini Ratna company Western Coalfields Ltd, which is provisionally Rs150 crore during the last financial year.
Western Coalfields had to bear an additional financial burden to the tune of Rs1,140 crore on account of payment and arrears to the executive and non-executive employees of company, its Chairman and Managing Director D C Garg has said.
Before implementation of NCWA agreement on wage revision, the estimated profit before tax was Rs1,290 crore against Rs930 crore during the corresponding period, he said.
Garg said the increased production of coal to the tune of 44.70 million tonnes during 2008-09 against a target of 43.05 million tonnes, an increase of 1.65 million tonnes which show a growth of 2.73% as compared to last year (43.51 MT), has indeed enabled to sustain profit last year also.
The achievement of 103.83% in coal production makes WCL the third highest in the Coal India Limited (CIL).
He said WCL has recorded highest achievement (107.5%) and growth (11.3%) among CIL subsidiaries in over burden removal during 2008-09. It has removed 126.79 MT cubic metres of over burden.