Rashtriya Ispat Nigam Ltd (RINL) has invited expressions of interest (EoI) from indigenous coke manufacturers in order to meet its requirement of low ash metallurgical (LAM) coke.
The company wants to procure coke by two means – wet lease and conversion basis.
The long-term agreement would be initiated either on a wet lease basis where the cokery unit of the bidder would be operated exclusively by the company for coke production.
In another set-up, the cokery units would be solely used for conversion of coal to coke, where the company will not have any involvement in operations but will only supply coking coal for production of coke.
Having a present annual production capacity of 7.5 million tonne (mn t) of hot metal, the company is envisaging LAM coke requirement of 0.5-1 mn t per annum in the next 3-4 years.
Nature of operations
On wet lease basis:
Under this provision, RINL intends to hire and operate the cokery unit with the operation team provided by the bidder.
The company would also be responsible for sourcing, supply of coking coal and blending it in requisite proportions. Given the logistics costs involved, the blending process would be carried out in the premises of the cokery unit.
On the other hand, the owner of the cokery unit would be entitled to payment on a monthly/yearly basis towards lease, maintenance and the manpower it will provide.
On conversion basis:
In this provision, RINL will solely supply coking coal to the cokery unit. The produced coke after conversion would be supplied back to the company.
Various cost involved in the operation, such as the , conversion cost and freight of coal and coke, will be borne by the company.
Bid criteria
The bidders are required to indicate the mode of supply of LAM coke (wet lease basis or conversion basis or both) while ensuring that the specifications are within the range specified by the company.
Required Specification
Also, performance reports of the past three fiscals have been sought from the applicants in addition to specifications regarding the cokery and details of the production process involved.
The last date for submission of the EoI is on or before 30 Jun ’21.
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