Coal India to dial in 6 MTs more coal from abroad: Medium Term Tenders floated

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 millions tonnes (MTs) each, to source coal from abroad. 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% to 12 MTs.

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 CIL in fortifying future supplies and keeping a vendor ready.

The tenure for placement of order is for a period of one year beginning July of the ongoing fiscal year till June'23 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.

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 Crores for each tranche of 3 MTs.

Though CIL is on its full steam in scaling up the production to meet the domestic demand of the country, this is a step towards a state of readiness to combat futuristic coal supply crunch if any.

This comes close on the heels of a short term e-tender of similar nature that the state owned coal mining behemoth issued on 8th June. However, that was for a limited period and limited quantity.

The last date for submission and opening and the bids received is 5 July, 2022.

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.

Shares of Coal India Limited was last trading in BSE at Rs. 198.35 as compared to the previous close of Rs. 198.65. The total number of shares traded during the day was 264538 in over 2846 trades.

The stock hit an intraday high of Rs. 199.50 and intraday low of 196.30. The net turnover during the day was Rs. 52306910.00.

Source : Equity Bulls

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CoalIndia INE522F01014 ETender CoalImport