Coal India has secured a booking of about 2.05 million tonnes (mt) against the offer of 3.78 mt in the first tranche of linkage auction for the non-regulated sponge iron sector, industry officials said on Tuesday.
“Coal linkage or fuel supply agreements worth 3.78 mt were on offer in the first Coal linkage auction for the sponge iron sector. Consumers booked about 2.05 mt,” said Coal Consumers’ Association of India’s Secretary General Subhasri Chaudhuri. The linkage would be for five years, while there is an exit clause in the agreement where the consumers can exit after two years without giving any penalty, she said. According to industry sources, the auction was conducted in 18 slots spanning six days. There were no bidders in some of the slots while only in three slots, the booking exceeded the offer amount and hence attracted a premium over the notified price in such cases.