UltraTech secures coal linkages for cement plants

The Dollar Business Bureau

UltraTech Cement Ltd has taken part in the recently held auction of coal linkages for cement sector. It has secured coal supply linkages for its cement plants in the State of Maharashtra, the company said in a statement on Thursday.

In an auction held on June 28, Ultratech won the coal linkages from Penganga OC mines to supply 52,000 tonnes per annum (TPA) of G10 Grade at a basic floor price of Rs.1,510 per tonne and a premium of Rs.20 per tonne, the statement said.

During the auction held on July 1, the company has bagged 30,000 TPA of Grade 8 coal supply from Mana Incline at a basic floor price of Rs.2060 per tonne. These coal linkages in favour of the company is expected in a short period, as per a formal communication.

UltraTech plans to take part in the coal linkage auctions to be held in future to cater to the needs of its plants that are strategically located in the surroundings of the coal mines, the statement further said.

The cement manufacturing firm has sold roughly around 46.93 million tonnes (MT) in the FY 2016 as against 43.38 MT in the previous fiscal year. During the January-March quarter of FY 2016, the company has reported sales of 13.20 MT when compared to 11.51 MT in the corresponding period last fiscal year.

UltraTech is the largest cement manufacturing company in India with an installed capacity of 69.3 MTPA. The company has 12 integrated plants, one clinkerisation unit, 19 grinding units and seven bulk terminals. The firm has operations across India, and other countries such as UAE, Bahrain, Bangladesh and Sri Lanka.