Steel Authority of
India (SAIL), India’s largest steel producer invites expression of interest for
supply of Metallurgical Coal on long term contract basis.
Presently, about 11
million tons (MT) of imported metallurgical coal is being procured
annually by SAIL from different countries, to meet its requirement.
This requirement
will be growing to 18 mt in the coming years, after completion of current
expansion programme.
Further, SAIL is
also working on its Vision 2020 strategy to raise its hot metal capacity
to around 50 mt, which will increase the coal requirement to around 40 mt.
A major part of the
metallurgical coal requirement (about 95%) is being imported by SAIL under
long term agreements with overseas producers/suppliers.
Long term agreements
can be entered into by SAIL for a period of more than one year and would
generally be concluded for a period of three years, preferably with
buyer’s option to extend by another two years.
The actual
quantities to be supplied under the long term agreements during
each delivery period are settled on yearly basis.
The interested EOI
bidder should express their interest in offering a quantity of at least 300,000
(three hundred thousand) metric ton per year.
However, their
prices are mutually discussed and settled on a quarterly basis with the
suppliers, according to SAIL's official document.
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