In a primary, Coal India points tender to import over 2 million tonnes of coal 

Express News Service

NEW DELHI: Amid the studies of coal scarcity within the nation, Coal India Limited (CIL) on Thursday knowledgeable it has floated a world tender to import 2.416 million tonnes (MTs) of coal on behalf of the state producing corporations (gencos) and unbiased energy crops (IPPs). This is the primary time India’s largest coal producer issued a young to import coal.

“In a first ever, Coal India Limited (CIL) on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.416 million tonnes (MTs) of coal,” mentioned the corporate in an announcement.

CIL will supply coal on behalf of the state producing corporations (gencos) and unbiased energy crops (IPPs) primarily based on the indents obtained from them. It is for the July-September interval of the present fiscal yr.

There is a provision within the tender to accommodate a variation of above or under 30% of the bid amount. The coal being sought is 5000 GAR (gross as obtained) thermal grade coal.

As the coal scarcity continues to influence the thermal energy crops, the facility ministry requested the state gencos to import coal for mixing functions. The ministry, in its order on 18 May 2022, additionally warned the facility turbines if orders for coal imports usually are not positioned by 31 May 2022, the defaulter gencos should improve their imports to the extent of 15%. Also if mixing with home coal doesn’t begin by June 15, the home allocation of the involved defaulters’ thermal energy crops will probably be additional decreased by 5%.  

The authorities had nominated CIL as a centralized company to enhance coal provides to state gencos and IPPs by means of the import of coal. CIL in its Board assembly held on 2 June had given its nod for the corporate to proceed forward with the issuance of two worldwide tenders for sourcing coal from abroad, a brief time period and a medium-term tender. The present brief time period tender for the import of coal, for Q2 of FY’23, is supply agnostic. This means the coal might be sourced from any nation.

“Though coal import is an uncharted terrain for CIL, within a week of receiving indents from the 7 State Gencos and 19 IPPs, for a total of 2.416 MTs of coal, the company on a war footing has finalized and floated the tender,” mentioned CIL.

The firm mentioned the final date for the receipt of bids is 29 June 2022. There is an possibility of a pre-bid assembly on 14 June 2022 to hunt clarification on any nuances of the tender.  After the worth discovery, CIL shall instantly execute a contract with the profitable bidder for the provision of coal. Then the state-owned coal miner shall enter right into a again to again settlement with state gencos and IPPs to whom coal must be equipped.

 The coal imported shall be routed by means of 9 ports situated on the east and west coasts of the nation. The profitable company, chosen by means of the bidding course of, shall ship coal to the doorstep of the facility crops of state gencos and IPPs.

However, the business consultants are of the view that the federal government ought to bear the distinction between the landed price of imported coal and the landed price of home coal. “Such cases Ministry of Power should bear the difference of the landed cost of imported coal and landed cost of domestic coal and State Gencos should not be punished because of none of their fault,” mentioned Shailendra Dubey Chairman of All India Power Engineer’s Federation (AIPEF).

Meanwhile, in accordance with the Central Electricity Authority’s each day coal report ( 7 June 2022), the coal inventory at 95 out of 173 thermal energy crops is at crucial ranges.