CIL board to take up PF contribution plan

KOLKATA: Coal IndiaNSE 0.16 % board will soon consider a proposal to voluntarily contribute Rs 10 to the Coal Mines Pension Fund for each tonne of coal sold. This will add at least Rs 600 crore to the Rs 13,000 crore fund, which is estimated to run out of money in eight years.

“Functional directors of Coal India have decided to place the proposal at the next board meeting. A decision on whether to absorb the additional outgo or pass it on to consumers would also be discussed,” a senior Coal India executive said. “If absorbed, it would be an additional burden on Coal India, which is currently reeling under an acute liquidity problem. If passed on, it will increase prices marginally.”