The much talked about SAlL’s LAM coke tender was finally awarded to Bhatia Coke and Energy Limited at INR 13,480/MT.
SAIL, the steel behemoth of India, had invited bids for purchase of LAM coke for its steel plant ‘Visvesvaraya Iron and Steel Limited’ in Feb’16. The quantity decided was 20,000 MT on FoR Bhadravati basis by road. Only indigenous coke manufacturer and PSU firms were allowed to participate in the tender.
According to latest updates from the concern, the tender was awarded to Bhatia Coke and Energy Ltd. The price decided is INR 13,480/MT.
It is to be noted that, SAIL has fixed the landed cost of the desired material to be INR 13,505/MT at max. Landed cost includes set off (LCNS), which includes basic price, Excise Duty (ED), Sales Tax (ST) and Transportation Charges minus taxes & duties to the extent set off credit is available to the buyer, viz ED, CESS, VAT etc (VAT set off is 90% of KVAT).
SAIL has decided the landed cost of LAM coke to be INR 13,505/ MT, equivalent to USD 204/MT. However, after negotiation, the deal was finally settled at INR 13,480/MT, equivalent to USD 203/MT.
Leave a Reply