JSW Energy Ltd has announced that it has emerged as the successful bidder in the auction of Dugda Coal Washery in Jharkhand, India. The company submitted its bid to Bharat Coking Coal Limited (BCCL), a subsidiary of Coal India Limited, to establish itself as the Washery Developer & Operator for the Dugda Coal Washery for a period of 25 years. BCCL has now issued a Letter of Intent to the company, declaring it as the successful bidder.
The Dugda Coal Washery has a capacity of processing 2 MTPA raw coking coal, and the company will have a firm linkage of 2 MTPA of raw coking coal and the right to the washery product. BCCL will supply raw coking coal at a premium of 2.35% over its notified price. Additionally, JSW Energy (Utkal) Limited, a consortium partner, will consume byproducts from the washery, which will be sold to them at market-linked prices.
This development is significant for JSW Energy Ltd, as it is in line with the company’s strategy to establish domestic coking coal security and optimize costs. The company is currently in the process of commissioning three coking coal mines in India, which will provide it with coking coal at a lower cost compared to imported coking coal.
The company’s successful bid is expected to provide it with a reliable source of raw coking coal and access to the washery product, while also creating opportunities for cooperation with consortium partners. Overall, this development is a significant milestone for JSW Energy Ltd, as it demonstrates the company’s commitment to securing domestic coking coal resources and optimizing costs.