New Delhi, July 14: A group of ministers on coal today agreed to give some six lakh workers in state-run coal companies a pay hike, which would take their wage bill to Rs 7,000 crore.

Left leaders had been demanding this raise for some time now.

The move comes in the midst of a bitter battle of words between the Left and the ruling alliance over divestment in Bharat Heavy Electricals Limited (Bhel) and FDI in retail and is being seen as a bid to assuage hurt feelings.

The wage deal, called the National Coal Wage Agreement, was finalised after an hour-long meeting of the group of ministers headed by defence minister Pranab Mukherjee.

Dasari Narayan Rao, minister of state for coal and mines, put forward his ministry’s views on three contentious issues which had been raised by Left-supported unions.

These were payment of arrears, compassionate appointment and minimum guaranteed benefit to workers.

The two sides agreed that employees who have left since June 2001 will be paid arrears on various accounts right away. For others, the method of payment will be worked out jointly between the unions and the coal companies.

The ministry made it clear that the existing provisions on employing a close kin of a worker who dies on the job will continue till a new scheme is jointly evolved. This will keep in view the various verdicts of the Supreme Court on this matter.