Prakash Industries has fulfilled all of its coal requirements through linkages for the Sponge Iron plant in Chhattisgarh. The Chhattisgarh based Steel Plant has a Sponge Iron capacity of 1 MnT per annum.
The company has recently won coal linkages of 0.21 MnT for the next 5 years, in the recently concluded III Trance auction of Coal Linkage auction for Sponge sector in which 7.755 MnT coal was offered. Earlier in Mar’17, the company had also secured linkages of 0.65 MnT for sponge plants in the previous phase of auction.
The coal requirement had increased with the commissioning of 5th Sponge Iron Kiln in Apr’17, but with this additional quantity the company has achieved 100% coal requirement for its sponge plants.
The total coal linkage quantity secured by Prakash Industries now stood 1.556 MnT per annum(including linkages for Captive Plant), and will yield annual saving of INR 90 Crore on fuel cost. As coal supply through Linkage auction saves over 20% on cost in comparison with the previously met supplies via spot auctions.
Capacity Addition:
Prakash Industries is planning to further expand its Steel plant capacity to 1.2 MnT per annum, with the commissioning of 6th Sponge Iron Kiln by Sep’18.
The new sponge iron kiln of 0.2 MnT capacity will also generate 15 MW power though co-generation from the waste gases coming out of the kiln, without the need of additional fuel cost.
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