Tata Sponge Iron Limited (TSIL) has successfully secured coal linkages of 24,000 tonne per year for the next five years at the ongoing auction of coal linkages to the sponge iron sector being conducted by Coal India Limited, the Managing Director of TSIL revealed to the media.
The attained quantity, however, accounts for even less than 10% of the company’s annual coal requirement of 300,000 tonne. Also, there was no cost benefit as the coal was priced at INR 3,000/tonne, which is higher than imports.
In this regard, the Managing Director has asserted that although the price is higher than imported variants, it makes sense to bid in the auction as it guarantees a secured supply chain as well as an alternate source.
He also has revealed that participation in the succeeding auctions will go on during the fiscal to increase the quantum of domestic supply.
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