Prakash Industries Secures Partial Coal Linkage for its Captive Power Plant
Prakash Industries Ltd. secured coal for its captive power plant in Chattisgarh, bringing to an end a two-year hunt for fuel.
The company will get 53,500 tonnes of coal every year over the next five years from Coal India Ltd. subsidiary, South Eastern Coalfields Ltd. The linkage will provide long-term stability, and cost savings for the its captive power plant, the company said in its press release.
Prakash Industries operates a 165 megawatt thermal power plant to manufacture sponge iron and ferro alloys. “We will meet the partial requirement for our 165 megawatt captive power plant through the linkage we have received,” Tanuj Verma, general manager of the company told BloombergQuint in a phone interview.
The company operated the pow er plant using captive coal from its Chotia mine until government de-allocated the coal block in September 2014. Since then, the company has been scouting for opportunities to secure its coal requirements.
Prakash Industries is in the process of setting up energy efficient furnaces in its steel melting shop. The company said its hoping to achieve backward integration by operationalising the allocated iron ore mines in the states of Chhattisgarh and Odisha.