How to Read a White Coal Quotation: Ex-Factory Price, Freight, GST and Payment Terms

Two white coal quotations can show very different numbers and still describe the same real cost, or the reverse. The headline rate per kilogram is only one line in a document that also fixes freight, tax, quantity, validity, quality and payment. Plant managers and procurement officers who read every line before comparing suppliers avoid most of the surprises that appear after the first truck arrives. This guide goes through a typical quotation line by line.

Start With the Price Basis: Ex-Factory or Delivered

The first thing to confirm is what the quoted rate includes. An ex-factory rate is the price of the fuel at the supplier's plant gate. Loading may be included, but transport to your site is not. A delivered rate, sometimes written as for-destination, includes freight to a named address. The two are not comparable until they are put on the same basis.

At Bharat Bio Industries our bulk white coal briquettes are priced ex-factory from Kadi, Gujarat, in a range of ₹6 to ₹14 per kg depending on grade, volume and feedstock. That range is a published ex-factory range, not a delivered price, and the exact rate for your order is confirmed in writing. If a competing quote is delivered and ours is ex-factory, add freight to ours before you read the two side by side.

Freight Is Quoted by Delivery Address

Freight depends on the distance and route from the plant to your gate, the vehicle type and the quantity per trip. A quotation should therefore name the delivery address, or at least the town and the nearest industrial area, rather than give a general freight figure. A rate that says freight extra without any basis is incomplete.

Ask who arranges the vehicle. We deliver mainly in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh, and logistics can be arranged by the buyer or by us. Whichever route you choose, record who bears transit risk, who pays for unloading and what happens if a vehicle is detained at your gate. These small clauses move real money over a year of supply.

GST: What to Check and How to Phrase It

A quotation should state whether the rate is exclusive or inclusive of GST, and at what percentage. As of October 2026, biomass briquettes and solid bio-fuel pellets are listed at 5 percent GST under Notification 9/2025-Central Tax (Rate). Coal, by comparison, has attracted 18 percent GST since 22 September 2025, when the compensation cess of ₹400 per tonne ended. Please confirm on the CBIC GST rate schedule or with your tax advisor before you finalise any purchase, because rates and classifications can change and your own circumstances matter.

The practical point is simple. If one quote is inclusive of tax and another is exclusive, the gap in tax treatment will distort your comparison. Convert both to the same basis. Our article on GST on biomass pellets in India explains the background in more detail. Also confirm that the invoice will carry your GSTIN correctly, since that affects your input tax credit position.

Quantity, MOQ and Tolerance

Our minimum order quantity is 25 MT, and a standard bulk contract is 50 MT per month. The quotation should state the quantity it applies to, because a rate offered for a single lot may not hold for a larger or smaller one. Check three things.

• Whether the rate is for a one-time lot or a monthly contract.
• The permitted tolerance on weight, and whether billing follows the weighbridge at the plant or at your site.
• Whether part loads are allowed, and if so how freight changes.

If you are new to white coal, a first order at the minimum quantity works as a trial. Our 25 MT trial checklist explains how to plan it.

Validity Period

Every quotation should carry a validity date, after which the rate may change. Feedstock availability and freight both move with the season, so a validity of a few days is normal and a very long validity should make you ask what has been assumed. Note the date on which your own approval process will finish, and ask for an extension in writing if you need more time. Do not treat an expired quote as a binding offer.

Specification and the Lab-Report Clause

The specification line is where a quotation turns into a quality commitment. BBI's own specification for briquettes is a GCV of 3800 to 4200 Kcal/kg, moisture below 10 percent, ash below 10 percent (typically 2 to 8 percent depending on feedstock) and sulphur below 0.1 percent. These are our specification, confirmed by the batch lab report, which is available on request. They are not a government certification.

A good quotation links the price to this specification and states that a batch lab report accompanies the supply. Ask what happens if a delivered lot falls outside the stated values: is there a sample-and-test procedure, a price adjustment, or a right to reject? Our guide on reading a biomass briquette lab report shows what each figure means, so you can check the report against the quote.

Payment Terms

For large orders we typically work on advance payment or a Letter of Credit. Established clients may qualify for 30-day credit terms after an initial trial period. Whatever the arrangement, the quotation should state when payment is due, in what mode, and what triggers dispatch, for example order confirmation plus payment. Ask also how disputes on quality or weight are handled and within how many days of delivery a claim must be raised.

Delivery Schedule

For Gujarat deliveries we typically dispatch within 2 to 5 business days of order confirmation and payment. For outstation orders the lead time is generally 5 to 10 business days depending on location. For a contract, the quotation should set out the monthly schedule, how much notice you must give to change it, and the supplier's plan for the monsoon, when raw material collection is harder.

The Terms at a Glance

Comparing Two Quotes Fairly

Once both quotes are on the same basis, price per kilogram still does not decide the matter, because fuels carry different amounts of heat. Compare cost per million Kcal. Divide 1,000,000 by the lab GCV in Kcal/kg to get the kilograms needed for each million Kcal, multiply by the landed price per kilogram including freight, and add the tax treatment you will actually bear. If you use a boiler efficiency figure, apply the same method to both fuels. Our guide to calculating boiler efficiency covers this.

Higher-grade coal has more heat per kilogram, and white coal is not a one-to-one replacement for every coal, so use measured values rather than assumptions. Add handling costs such as ash removal and any feeder changes. You can test your own figures on our fuel cost calculator, and our supplier selection guide lists other questions to put to any supplier.

Before You Sign

Read the quotation once for numbers and once for obligations. Then ask for the batch lab report, the delivery address on which freight is based, and a written statement of the payment terms. See the full specification on our biomass briquettes page.

Contact our team with your location, boiler type and monthly requirement, and we will send a written quotation you can check line by line.