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Sarda Energy wins 2 coal mine auctions; expects cost savings of around 15%

Updated : December 31, 2020 11:14:38 IST

Sarda Energy has bagged two coal mines, Gare Palma 6 and 7 Coal Mine in Chhattisgarh and Sahapur West Coal Mine in Madhya Pradesh. The win will provide security with cost savings of approximately 15 percent, said Manish Sarda, Director of the company on Thursday.

“It is a long term raw material security for the company – that is a major advantage where you are not subject to fluctuations and volatility of the coal market. Secondly, we will be saving significantly in terms of costings. Not to put an exact number right now, but definitely in the range of 15-20 percent cost saving will be there. We will be using the coal captively and there is a benefit of cess,” Sarda said in an interview with CNBC-TV18.

He said that they can ramp up production up to 1.8 million tonne and expecting to kick start the mines in 12-15 months.

On margins, Sarda said, “We are running 100 percent on capacity and if you look at the ground demand also, domestically the ground demand has also been quite strong. With the infrastructure projects back on track with lockdowns getting opened up, everything is back on track. So we are seeing a lot of demand on ground as well. So, I think margins should remain stable or be a little bit here and there but not majorly varying from the last numbers.”

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