BackAbhijeet Group, US firm in $7 bn coal supply deal
FJS Energy is in talks with local power and steel producers for similar deals
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New Delhi: US-based FJS Energy LLC signed a 25-year deal with India’s Abhijeet Group to supply coal and is in talks with local power and steel producers for similar deals to meet the South Asian country’s need for the fuel.
“People have imported a few shipments of coal from the US, but the ground-breaking thing is that this is a long-term contract," Christopher Sargunam, chief operating officer of FJS Energy, said in an interview on Thursday. “We are probably giving a discount to secure ourselves a more long-term market."
Sargunam said the first shipment of coal will arrive next month at Kandla port in Gujarat from New Orleans. FJS is looking at monthly shipments initially.
The deal size would work out to some $7 billion, FJS said in a statement. Sargunam said the price of the coal would be based on the Nymex index and would be periodically revised.
ruchira.s@livemint.com
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