State-owned miner Coal India's unit Bharat Coking Coal Ltd (BCCL) has approved interim measures to mitigate financial stress faced by contractors due to the sharp rise in bulk diesel prices.The decision was cleared by BCCL's Committee of Functional Directors (CFD) in meetings held on June 3 and June 4, the company said in a regulatory filing on Friday.The measures implement a framework approved by Coal India for eligible ongoing contracts affected by the abnormal increase in bulk diesel prices.The move comes amid broader concerns over the inflationary impact of rising fuel costs. Petrol and diesel prices have risen by about Rs 7.5 per litre since May 15, with ratings agency Crisil warning that higher fuel prices could increase transportation and manufacturing costs and eventually feed into consumer inflation if global crude oil prices remain elevated.Under the approved mechanism, diesel price variation payable to eligible contractors engaged in the hiring of Heavy Earth Moving Machinery (HEMM) and coal transportation services will be calculated with reference to bulk diesel rates, subject to terms and conditions approved by the competent authority.The move is aimed at providing relief to contractors whose operating costs have risen due to higher diesel prices, a key input in mining and transportation activities.BCCL said the financial impact of the decision cannot be quantified at present and will depend on the actual claims made under the approved mechanism.
Coal India unit BCCL greenlights measures to ease diesel price stress on contractors
Bharat Coking Coal Ltd, a unit of Coal India, has approved interim measures. These steps aim to ease financial strain on contractors. The strain is caused by a sharp increase in bulk diesel prices. The decision was made by BCCL's Committee of Functional Directors. This framework will help eligible ongoing contracts affected by the abnormal rise in diesel costs.
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