India: SCCL Offers 250,000 MT Coal Sales for Sponge Iron Sector

Singareni Collieries Company Ltd (SCCL), the coal miner operating in Telangana, has raked 250,000 MT coal for sales to the Sponge iron sector under the linkage auction.

The current scheme is the third tranche of linkage auction for non-regulated sector, which envisage long term fuel supply for a particular industry. The fuel Supply agreement under the linkage auction is 5 year which can be extended by another 5 years on mutual agreement.

SCCL has already concluded the auction for Cement, Captive Power Plant and Other sub-sectors in this round.

Under the auction for sponge sector, the company has put forward 250,000 MT coal from its three mines-RK-6, Rk-5 and MNG OC-II, which would be auctioned on the same day at 12 Sep’18 in different time slots.

Quantity in MT
Price in INR/MT
ROM-Run-of-mine
CRR- Crushed ROM

The reserve coal price is as per the price notified for the non-power sector. For G9 ROM grade of coal supplied from RK-5 and RK-6 mines it is INR 2800/MT, while for G7-CRR grade coal it is INR 3160/MT (Base Price of G7 grade is INR 3100/MT and INR 60/MT is for sizing charge).

The coal company has also offered measure for back-up coal supply from secondary source in case of a Force Majeure event.

Interested bidders are required to register themselves at MSTC, which provides the platform for online bidding process for the linkage auction.

In addition to the payment of registration fee and bid security amount, bidders are required to submit information about the capacity of the plant (in Tonnes per day) for which the coal linkage is being sought along with Annual Contracted Quantity of coal available to them from the existing coal linkage, peak rated capacity, and grade of coal available (if any) from its captive mines.

Additional information contained in the scheme document of auction can be seen at MSTC portal.