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NSEL e-trades 3000 MT imported coal

NSEL, electronic spot market for commodities promoted by Financial Technologies Group, carried out the first trade of 3000 mteric tonnes of imported coal on its electronic platform.

, ET Bureau|
Updated: Aug 04, 2012, 11.18 PM IST
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NEW DELHI: National Spot Exchange Limited (NSEL), electronic spot market for commodities promoted by Financial Technologies Group, carried out the first trade of 3000 mteric tonnes of imported coal on its electronic platform. The exchange recently launched delivery-based imported coal contracts, having delivery on export location, Mangalore.

This is likely to facilitate large number of power sector companies, cement manufacturers, sponge iron manufacturers, sugar mills and other industries to source imported coal electronically through the NSEL platform. During 2011-12, imports stood at 99 million metric tonnes, 44 per cent higher than the previous fiscal.

This is expected to increase further during 2012-13 as the gap between demand and domestic production is estimated to be 148 million metric tonnes. If the average price is Rs. 7000 per metric ton, it works out to be around Rs. 1 lakh crore market per annum. NSEL's coal contract is of non-coking coal of South African origin. The quality of coal is determined through various parameters like moisture percentage, calorific value, ash content, volatile matter and sulphur content.

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%. NSEL managing director and ceo Anjani Sinha said that the exchange will 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, we will continue to bring in reforms to develop a seamless and risk-free marketplace," he said.

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