Sunday, June 26, 2022

Coal India floats maiden tender for coal imports, seeks 2.416 MT for gencos, IPPs

In a first ever, Coal India Limited (CIL) has floated an international competitive bidding e-tender on Wednesday, seeking bids for import of 2.416 MT of coal

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  • The coal being sourced on behalf of the state generating companies (gencos) and independent power plants (IPPs) is based on the indents received from them
  • The current short-term tender for import of coal, for Q2 of FY’23, is source agnostic

New Delhi: In a first ever, Coal India Limited (CIL) has floated an international competitive bidding e-tender on Wednesday, seeking bids for coal imports of 2.416 million tonnes (MT) of coal. The coal being sourced on behalf of the state generating companies (gencos) and independent power plants (IPPs) is based on the indents received from them. It is for July-September period of the current fiscal year.

There is a provision in the tender to accommodate a variation of above or below 30 percent of the bid quantity. The coal being sought is 5000 GAR (gross as received) thermal grade coal.

Tender for short-term coal imports source agnostic: CIL

The government had nominated CIL as a centralised agency to augment coal supplies to state gencos and IPPs through import of coal, at a time when the demand for coal is high. CIL’s Board on June 2 had given its nod for the company to proceed ahead with the issuance of two international tenders for sourcing of coal from overseas, a short-term and a medium-term tender.

The current short-term tender for import of coal, for Q2 of FY’23, is source agnostic. This means the coal can be sourced from any country.

Though coal import is an uncharted terrain for CIL, within a week of receiving indents from the seven State gencos and 19 IPPs, for a total of 2.416 MTs of coal, the company on a war footing has finalised and floated the tender.

Last date for receipt of bids is June 29

The last date for the receipt of bids is June 29. There is an option of pre-bid meeting on June 14 to seek clarification on any nuances of the tender.

After the price discovery, CIL shall immediately execute a contract with the successful bidder for the supply of coal. Then the state-owned coal miner shall enter into a back-to-back agreement with state gencos and IPPs to whom coal has to be supplied.

The coal imported shall be routed through nine ports located in the east and west coasts of the country. The successful agency, selected through the bidding process, shall deliver coal at the doorstep of the power plants of state gencos and IPPs, said CIL.

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