Nagpur: After talks with West West Management Limited (WCL) ended without agreement, the contractor who pulled the excavation equipment to a mining company said the increase in diesel prices would force them to stop working within a week.
Contractors are under the association employing equipment contractors (HOE).
The machines are involved in removal of the earth to reach coal layers in the mine.
They have sent notices for termination of unlimited work from November 1, if escalation at the fuel rate is not compensated by revising the formula.
Similar notifications were sent to other subsidiaries of Indian Batuble Limited (CIL).
If the strike occurs, there is “strong possibility of its impact on coal production throughout the country”, said the contractor.
A meeting was held at the WCL headquarters on Monday, after that the contractor held another meeting to plan their strategies.
It was decided to hold a meeting of all CIL contractors on October 30 and continue plans.
Lokesh Jain from the Nagpur Association Unit said, “The contractor has suffered daily losses that flow to Crores.
This is because only 30% of the diesel price escalation is forwarded below the existing tender provisions.
It is inadequate because of the steep price increase, and contractor margins have been eroded .
They headed to Crunch Cash and might run out of funds to buy fuel in a few days.
This will bring a traffic jam.
“At present, Diesel stands at RS105 per liter.
According to tender conditions, the price increase of up to 30% is allowed.
However, the price rose by 67% of the Basic Diesel tariff, said the letter was handed over to the Chairperson of the WCl and the Implementing Director (CMD) on Monday.