Coal India floats tender to purchase imported 6 MT coal; stock plunges over 2%

13 Jun 2022 , 12:24 PM

Coal India’s counter opened sluggish today and has fallen over 2% so far. This followed the company’s announcement to get 6 million tonnes more coal from abroad, issuing medium-term tenders for supplies.

The bids are invited for 5,000 gar quality of thermal grade coal. The estimated value of this import stands at Rs3,850 billion for each tranche of 3 million tonnes of coal. Two medium-term tenders for a total of 6 million tonnes of coal quantity have an option of increasing bid quantity by 100% to 12 million tonnes.

The company issued a tender for the first time ever for purchasing imported coal for power generating companies as the Centre directed it to cater to the shortfall in the domestic supply chain.

The company will supply the imported coal to state government-owned gencos and independent power producers (IPPs), 1.2 mt each.

Last month, the Power Ministry asked the company to import coal for state and private gencos. The tenders mentioned are to maintain coal levels for immediate and future needs.

Coal India is currently trading at Rs193.95 down by Rs4.4 or 2.22% from its previous closing of Rs198.35 on the BSE. The scrip touched intraday high and low of Rs197.45 and Rs191.80 respectively.