Coal India to source 6 MT more imported coal; floats medium-term tender

Two days ago, the company for the first time ever issued a tender for purchasing imported coal for gencos.

Coal India will get 6 million tonnes more coal from abroad, issuing medium-term tenders for supplies, said the state-owned company is a statement on Friday.

The bids are for 5,000 gar (gross as received) quality of thermal grade coal, said Reuters. The estimated value of work is pegged at Rs 3,850 billion for each tranche of 3 million tonnes (mts) of coal. Two medium term tenders for total of 6 mts coal quantity have an option of increasing bid quantity by 100 per cent to 12 mts.

Two days ago, the company for the first time ever issued a tender for purchasing imported coal for power generating companies (gencos) in the wake of the Centre directing it to meet the shortfall in the domestic supply chain.

The imported coal would be supplied to state government-owned gencos and independent power producers (IPPs), 1.2 mt each. The power ministry last month asked the company to import coal for state and private gencos. This came two weeks after state and private gencos were told to import coal for 10 per cent blending, but were later asked to keep their tenders ‘in abeyance’. 

"In an urgency to shore up coal stocks at the indigenous coal-based power plants, as directed by the government, Coal India Limited (CIL) on Friday floated two international competitive bidding e-tenders of 3 million tonnes each to source coal from abroad," said the company statement.

The tenders are not indent based but to keep coal on tap for immediate availability and use in future. It is an advance action by the firm in fortifying future supplies and keeping a vendor ready, PTI reported.