Coal public sector undertakings (PSU) announced a performance-linked reward (PLR) of Rs 1,03,000 each for non-executive workers, an official statement said on Friday. 

The reward payment will benefit approximately 2.1 lakh non-executive cadre employees of Coal India Ltd and its subsidiaries, along with around 38,000 non-executive workers at Singareni Collieries Company Ltd (SCCL), according to the statement.

The decision has a financial impact of Rs 2,153.82 crore for Coal India Ltd and Rs 380 crore for SCCL.

The government informed that payments will be credited on a pro rata basis based on attendance. PSUs under the Ministry of Coal announced this reward following the sixth meeting of the standardisation committee of the Joint Bipartite Committee for the Coal Industry.

The coal ministry announced that it aims to recognise the contribution and hard work of non-executive workers across all CIL subsidiaries and SCCL and ensure they are fairly rewarded for their efforts.

The payment of PLR provides a timely boost to the workers and their families during the festive season, it added.

The Performance-Linked Reward underlines the commitment of CIL and the Ministry of Coal to worker welfare, motivation, and recognition of contractor contributions.

By providing the PLR, CIL aims to boost productivity, morale, and job satisfaction among non-executive workers, who play a vital role in the company’s mining operations and thus significantly contribute to shaping an Aatmanirbhar Bharat.

The recent GST reforms have eliminated the Rs 400 per tonne compensation cess previously levied on coal, while the GST rate on coal has been raised from 5 per cent to 18 per cent.

The coal ministry had earlier informed that the overall effect of the reforms, despite the increase in GST rates from 5 per cent to 18 per cent, is a lower tax incidence for final consumers, combined with a correction of the inverted duty structure that releases liquidity, eliminates distortions, and prevents large accounting losses for coal producers.