The deal is for 1.18 million metric tons (mt) over five years for the plants in Dongamahua and Raigarh, which reportedly produce a respective 540 megawatts (MW) and 134 MW.

JSPL said the linkage will ensure a steady and assured coal supply to the plants, thus increasing fuel security, and will also significantly enhance the plants’ operational efficiencies.

“In line with our philosophy, our prudent bids ensure that we get constant supply of coal for a period of five years,” JSPL MD and Group CEO Ravi Uppal said. “We are looking forward to the next round of coal linkage auctions to fill the gap, and would selectively participate to further enhance our long-term fuel security requirements at prudent terms of our steel and power businesses.”

In related JSPL news, new outlets in India reported August 23 that the company has hired asset advisory firm Capital Optima to potentially restructure some of its $550 million in loans and examine the possible sale of its cash-positive assets.

Citing an unnamed source, India financial data group VCCircle said the firm will work with Singapore-based Avista to evaluate the recasting of the loans.