Prakash Industries today said it has secured an additional coal linkage of 2.10 lakh tonnes per annum (LTPA) for a period of five years.
"In the recent coal linkage auction conducted by Coal India Ltd (CIL) for sponge iron sector, the company has secured additional coal linkages of 2.10 lakh tonnes per annum for the next 5 years," Prakash Industries Ltd said in a BSE filing.
The fuel supply agreement will be signed in the coming weeks and the supplies will commence from next month, the company added.
Prakash Industries also said its coal requirement has increased with the commissioning of fifth sponge iron kiln in April this year and the additional quantity will fulfil its 100 per cent requirement for the sponge iron plants, thereby saving over 20 per cent in coal costs.
"With this additional linkage, the profitability will also improve by over Rs 20 crore, taking total annual cost savings on total linkage quantity of Rs 15.56 lakh tonnes per annum to over Rs 90 crore," it said.
Shares of the company were up 3.23 per cent at Rs 135.65 apiece on BSE.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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