Supplies to commence from November 2017
Prakash Industries announced that in the recent Coal Linkages auction conducted by Coal India for Sponge Iron sector, the Company has secured additional coal linkages of 2.10 lakh tonnes p.a. for the next five years. The Company is going to sign the Fuel Supply Agreement in the coming weeks and the supplies will commence from November 2017.With this additional quantity, the Company has fulfilled its 100% requirement for the sponge iron plants from linkages, which was earlier being met through spot auctions; thereby saving over 20% in coal costs.
Accordingly, with this additional linkage, the profitability will improve by over Rs 20 crore; taking total annual cost saving on total linkage quantity of Rs 15.56 tonnes p.a to over Rs 90 crore.
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