Brief: Tata Sponge Iron gets LOI from Eastern Coalfields for fuel supply agreement

Tata Steel Long Products

24/06/2016 13:37

June 24 (Reuters) - Tata Sponge Iron Ltd  TTSP.NS : 
 * Co is in receipt of LOI from Eastern Coalfields declaring co as successful 
   bidder for award of 24,000 tonnes p.a. of coal 
 * Co would be required to execute fuel supply agreement, valid for a period of 
   5 years from date of execution of agreement 
 
 * Source text: With reference to the earlier letter dated June 15, 2016 regarding Allocation of Coal Linkage, Tata Sponge Iron Ltd has now informed BSE that the Company is in receipt of Letter of Intent ("LOI") from Eastern Coalfields Limited (A subsidiary of Coal India Limited) declaring the Company as a successful bidder for award of 24,000 Tonnes per annum of Coal at a notified price (winning premium is zero). The notified price shall be reviewed by Coal India Limited on a half yearly basis. 
 
As per the said LOI, the Company would be required to execute the Fuel Supply Agreement, valid for a period of 5 (five) years from the date of execution of the Agreement and is further extendable for another 5 (five) years. The said agreement shall have a lock-in period of 2 years. 
 
This tonnage constitutes less than 10 percent of the Company's annual coal requirement. 
 
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