Prakash Industries has secured additional coal linkages of a total quantity of 5.43 lakh tonnes per annum for the next 5 years in the recent coal linkage auction conducted by Coal India (CIL). The company is going to sign the Fuel supply Agreement (FSA) in the coming weeks and expect the supplies to commence from next month.
So far, the company was meeting its coal requirements from CIL through Spot Auctions, which were expensive by 20% as compared to Linkages. Hence, in pursuit to reduce costs further, the company has now shifted its sourcing to Long Term Linkages. Securing these linkages will provide long terms stability and cost savings in the operations of the company.
With this, the total quantity of coal secured through linkages amounts to 13.00 lakh tonnes per annum, thereby around savings are expected to the tune of over Rs 70 crore per annum.
Prakash Industries is an integrated steel and power company. Its products include coal mines, iron ore mines, sponge iron, power, steel melting shop and ferro alloys.
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