Financial Daily from THE HINDU group of publications
Wednesday, Oct 06, 2004
Financial Daily from THE HINDU group of publications Wednesday, Oct 06, 2004 |
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Corporate
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Alliances & Joint Ventures Met coke supplies — SAIL signs agreement with Durgapur Projects Our Bureau
Kolkata , Oct. 5 IN view of the rising steel production and growing demand of metallurgical coke, Steel Authority of India Ltd has entered into an arrangement with Durgapur Projects Ltd (DPL). As per the agreement, Durgapur Steel Plant (DSP), a division of SAIL, would provide imported coking coal and it would be converted into blast furnace grade metallurgical coke by DPL. The agreement was signed by Dr S.K. Bhattacharyya, Managing Director of DSP, Mr K.K. Khanna, Director (Technical) of SAIL, and Mr S.P. Dutta, Director of DPL. DSP, through SAIL Operations Directorate, would provide 25,000-30,000 tonnes of coking coal per month in the proportion of 65 per cent hard and 35 per cent soft from the current month by rail. As per the arrangement, DSP would be supplying the coal on a cost-free basis to DPL at its plant site for converting it to blast furnace grade metallurgical coke, including all undersize coke fractions. "The SAIL Operations Directorate would also ensure a buffer stock of coking coal required for production of around 100 days at DPL," a press release from DSP stated. DSP has agreed to pay a lump sum conversion fee of Rs 1,950 per tonne of gross coke on a dry basis to DPL. The statutory taxes, duties and other charges, wherever applicable, would be paid by DSP. DPL would also offer this service to Bokaro Steel Plant. "As DPL is based in Durgapur, the agreement happened to be with DSP but as things stand, if needed, blast furnace grade metallurgical coke from DPL would be transported to Bokaro too," sources said. Sources further explained that as SAIL is aiming to increase its production targets, it is badly in need of blast furnace grade metallurgical coking coal. The existing capacities at Durgapur and Bokaro are unable to meet this increased demand. "This agreement would help Durgapur Steel Plant to achieve well over two million tonnes of hot metal production in the current year, a feat not yet being achieved by the plant since its inception," the sources said.
More Stories on : Alliances & Joint Ventures | Steel | Coke & Metalurgical Coke
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