Coal India floats maiden tender to import 2.42 million tonnes coal

9 Jun 2022 , 12:50 PM

In a first ever, Coal India Limited (CIL) on Wednesday floated an international competitive bidding e-tender, seeking bids for import of 2.41,6 million tonnes (MTs) 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.

Further, the company said in a regulatory filing, that 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.

Government of India had nominated CIL as a centralized 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 02, 2022 had given its nod for the company to proceed ahead with the issuance of two international tenders for sourcing 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 7 State Gencos and 19 IPPs, for a total of 2.41.6 MTs of coal, the company on a war footing has finalized and floated the tender.

The last date for the receipt of bids is June 29, 2022. 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 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, said company.

At around 12:52 PM, Coal India was trading at Rs198.55 apiece up by Rs0.9 or 0.46% from its previous closing of Rs197.65 apiece on the BSE.