NSEL kickstarts imported coal trade, 3000 MT traded on day one

MUMBAI: About 3000 Metric tonne of imported coal was traded on Mumbai-based National Spot Exchange Ltd ( NSEL), which recently launched delivery-based imported coal contracts with delivery on export location Mangalore.

This facilitates power sector companies, cement manufacturers sponge iron manufacturers, sugar mills and other industries to source imported coal electronically through NSEL platform. The platform also enables large importers to sell imported coal directly to end users without any intermediary.

These imported coal contracts have net calorific value in the range of 5800 to 6000 kcal/kg, volatile matter is less than 21%, sulphur is below 1% and moisture content is between 8% to 13%. The quality is certified by Inspectorate M&L (PTY) LTD and Mitra S K Private Limited.

The minimum trading lot is 500 MT and the price quotation is in INR (Indian Rupees) per MT. The first trade of 3000 MT recorded on July 24, 2012 was at Rs. 7,300 per MT. At present, 80,000 MT of coal is lying at the Mangalore port, which will be sold through NSEL platform over the next 1 month.

Shri Anjani Sinha, MD & CEO, NSEL said, "We are committed to carry out structural reforms in the physical trade across various commodities, be it agricultural commodities, metals, energy or any other stuff, which is deliverable in India. The idea is to develop a seamless and risk-free marketplace, which can be relied upon by large number of buyers and sellers.