Tata Sponge Iron Ltd has said that it has secured a supply of 24,000 tons per annum of domestic coal of G4 grade from Coal India Ltd by winning a bid in the linkage auction for the sponge iron sector.
The company said in a release that the tonnage won in the auction is less than 10% of its annual coal requirement.
CIL had started linkage auctions from June 10 for the sponge iron sector, which continues till June 16.
The company, however, clarified that it is yet to receive the allotment letter from CIL, but the information was shared on the basis of the update available on the website of the service provider that conducted the auction.
Tata Sponge is a coal-based merchant sponge iron producer and operates 3 rotary kilns with an installed capacity of 390,000 tons per annum (tpa).
Its sponge iron production stood at 0.36 million tons (mt) in 2015-16, down 1.64% from 0.366 mt in 2014-15. Its power generation was also reduced by 5.83% to 162.93 MKWH in 2015-16 from 173.02 MKWH in the previous fiscal.