CIL floats tender to import 2.41 million tonnes of coal

NEW DELHI:  Amid reports of coal shortage in the country, Coal India Limited (CIL) has floated an international tender to import 2.416 million tonnes (MTs) of the fuel on behalf of the state generating companies (gencos) and independent power plant s (IPPs). This is the first time India’s largest coal producer issued a tender to import coal.

“In a first ever effort, 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,” said the company in a statement on Thursday. CIL will source coal on behalf of the state generating companies (gencos) and independent power plants (IPPs) based on the indents received from them.

It is for the July- September period of the current fiscal year. “There is a provision in the tender t o accommodate a variation of above or below 30% of the bid quantity. The coal being sought is 5000 GAR (gross as received) thermal grade coal.

As the coal shortage continues to impact the thermal power plants, the power ministry asked the state gencos to import coal for blending purposes. The ministry, in its order on May 18, 2022, also warned the power generators if orders for coal imports are not placed by May 31, 2022, the defaulter gencos will have to increase their imports to the extent of 15%.

Also if blending with domestic coal does not start by June 15, the domestic allocation of the concerned defaulters’ thermal power plants will be further reduced by 5%. The government had nominated CIL as a centralised agency to augment coal supplies to state gencos and IPPs through import of coal. CIL in its Board meeting held on June 2 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.

CIL to source coal on behalf of gencos, IPPs
CIL will source coal on behalf of the state generating companies (gencos) and independent power plants (IPPs) based on the indents received from them. This is the first time CIL issued a tender to import coal