Coal India Limited (CIL) announced on Friday that it has floated two international competitive bidding e-tenders of 3 million tonnes (MTs) each, to source coal from abroad. It did so in order to urgently shore up coal stocks at the indigenous coal-based power plants, as directed by the government.
The development comes a day after CIL floating its maiden tender to import 2.416 million tonnes of coal. The import tender was floated after the government asked the company to build up stock of fossil fuel to avoid the reoccurrence of power outages, which happened in April on account of shortage of the fuel.
The bids are for 5,000 GAR (gross as received) quality of thermal grade coal. These two medium-term tenders for a total of 6 million tonnes (MTs) coal quantity have an option of increasing the bid quantity by 100 per cent to 12 MTs.
CIL, in an official statement, explained that the tenders are not indent-based but to keep coal on tap for immediate availability and use in future, It added that this is an advance action by CIL in fortifying future supplies and keeping a vendor ready.
The tenure for placement of the order is for a period of one year beginning July of the ongoing fiscal year till June 2023 The minimum indent quantity will be 50,000 tonnes.
"As and when indented by the state gencos and independent power plants orders will be placed to ship the coal into the country. From the date of placing the indents delivery of coal would be made within 30 days at the free on rail destination of the power plants which seek coal. This means delivery at the doorstep," added CIL.
For the 6 MTs coal sought through competitive bids nine destination ports have been identified for the discharge of coal, 3 MTs each at the eastern and western coasts of the country. The estimated value of the work is pegged at Rs,3,850 core for each tranche of 3 MTs.
''This comes close on the heels of a short-term e-tender of similar nature that the state owned coal mining behemoth issued on June 8. However, that was for a limited period and limited quantity,'' it said.
The last date for submission and opening and the bids received is July 5.
With little or no experience in coal imports, CIL has floated two back-to-back international competitive bids, as assigned by the government, in a record time adhering to the timeline set.
''In a first-ever, Coal India Limited on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.416 million tonnes (MTs) of coal,'' the company had said in a statement on Thursday.
The coal being sourced on behalf of the state 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.
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 2.41.6 MTs of coal, the company on a war footing has finalised and floated the tender.
(With PTI Inputs)
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