India: Prism Johnson secures additional coal linkages from CIL subsidiaries

• New 128,000 tonnes/year linkage lifts total to 279,400 t/year
• 10-year Fuel Supply Agreements (FSAs) strengthen fuel security

Prism Johnson Ltd has secured additional long-term coal linkages of 128,000 t/year from Coal India Ltd (CIL) subsidiaries Eastern Coalfields Ltd (ECL) and South Eastern Coalfields Ltd (SECL), strengthening fuel security for its cement operations.

The company was declared the successful bidder in a recently concluded MSTC coal linkage auction for the cement industry. Under the new allocations, ECL will supply 24,000 t/year, while SECL will supply 104,000 t/year, with both arrangements proposed for a 10-year period from the execution of the respective FSAs.

Total coal linkage rises to 279,400 t/year
With the additional allocation, Prism Johnson’s total coal linkage has increased to 279,400 t/year, covering approximately half of its Cement Division’s annual fuel requirement. The company already holds coal linkages of 151,400 t/year, of which 111,400 t/year is scheduled to expire in February 2027.

The new linkages therefore provide greater visibility on long-term coal availability and partially offset the upcoming expiry of existing arrangements.

Contract value, execution timeline
The combined contracts with ECL and SECL are valued at approximately INR 70.49 crore per annum. The FSAs are required to be executed within 90 days from the issuance of the Letters of Intent dated 17 August 2026.

Market implications
The additional linkage may reduce Prism Johnson’s exposure to spot-market procurement and improve visibility over domestic coal availability. The new 10-year supply arrangements also partly offset the expiry of 111,400 t/year of existing coal linkages scheduled for February 2027.