Coal mines PFO to impose levy on member companies’ production
A levy of Rs 10 on every tonne of coal produced will be imposed by the Coal Mines Provident Fund Organisation (CMPFO) on its member producers, including Coal IndiaNSE -1.18 % and Singareni Collieries. The levy will help bridge an asset-liability mismatch that was predicted to completely deplete the pension fund by 2028.
The levy is estimated to raise Rs 650 crore from Coal India this year if it manages to meet its yearly production target. The resulting increase in the cost of power generation would be less than 1 paisa per unit, a Coal India executive said. It will, however, benefit some 5 lakh pension holders and ensure provisions for future pension payments for another set of at least 4.8 lakh coal employees in the future.
