With reference to the earlier letter dated June 15, 2016 regarding Allocation of Coal Linkage, Tata Sponge Iron has now informed that the Company is in receipt of Letter of Intent (‘LOI’) from Eastern Coalfields (A subsidiary of Coal India) declaring the Company as a successful bidder for award of 24,000 Tonnes per annum of Coal at a notified price (winning premium is zero). The notified price shall be reviewed by Coal India on a half yearly basis. As per the said LOI, the Company would be required to execute the Fuel Supply Agreement, valid for a period of 5 years from the date of execution of the Agreement and is further extendable for another 5 years. The said agreement shall have a lock-in period of 2 years. This tonnage constitutes less than 10 percent of the Company’s annual coal requirement.
The above information is a part of company’s filings submitted to BSE.
