The Hindu Business Line : MetalJunction-NCDEX may launch coal futures

Growth plans
The company is working to expand the scope and offering of e-auction by including imported thermal coal.
It is expected to maintain 50 per cent growth during the current fiscal over roughly Rs 4,500-crore turnover reported in 2005-06.

Kolkata. July 3

, MetalJunction Services Ltd and NCDEX combine is expected to launch delivery-backed futures for domestic and imported coal in September. The forward contracts will be traded at NCDEX based on daily spot prices released by CoalJunction, the coal e-auction wing of MetalJunction Services. The MetalJunction Services Managing Director, Mr V. Oberoi, told Business Line that the company had entered into agreements with MMTC and Adani group for sourcing imported thermal coal. Adani group is one of the major traders in imported coal. In the domestic front, the company has supply agreement with Coal India Ltd (CIL).

According to Mr Oberoi, the forward contracts will be followed by the launch of India's first over-the-counter trading on coal underlining delivery-backed counter-party hedging. "Our aim is to start OTC trade on coal. However, it (OTC trade) will take longer time to be launched and is unlikely to begin in 2006," he said.

e-auction

Talking on the e-auction of coal, he said that the company was working to expand its scope and offering by including imported thermal coal. "We are not looking at big customers like power plants and so on who are capable enough to source their own requirement and is targeting the small and medium sector for selling the imported coal."

Stating that CIL has agreed to enhance the supplies from 20 million tonnes in 2005-06 to 36 mt in 2006-07, Mr Oberoi said increased domestic supplies together with imported varieties would increase liquidity in CoalJunction.

According to him, the company is expected to maintain 50 per cent growth during the current fiscal over roughly Rs 4,500-crore turnover reported in 2005-06.

"We have maintained the growth in the first quarter and may reach Rs 8,000 crore during 2006-07."

Steel is the mainstay of business contributing over 50 per cent of the revenue, followed by 25 per cent through raw material sourcing business.

Coal and other peripheral services contribute 25 per cent of the turnover.

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