Tata Sponge up 4%, wins bid for 24K tonnes of coal from CIL unit

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Moneycontrol Bureau

Tata Sponge Iron shares closed higher by 4 percent at Rs 614.80 on Monday after the company won bid for 24000 tonnes of coal from one of Coal India's units.

The company said it was in receipt of letter of intent from Eastern Coalfields (a subsidiary of Coal India) 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 will be reviewed by Coal India on a half yearly basis.

As per the said letter of intent, the company will be required to execute the fuel supply agreement, valid for a period of five years from the date of execution of the agreement and is further extendable for another five years.

"The said agreement shall have a lock-in period of 2 years," says the company, adding this tonnage constitutes less than 10 percent of the Company's annual coal requirement.Posted by Sunil Shankar Matkar