Coal India Limited to import 6MTs of coal for domestic power plants

Coal India Limited (CIL) said that it has floated a couple of international competitive bidding e-tenders of three millions tonnes of coal in order to address the urgent need for stacking up coal for indigenous coal based power plants.

As per the Indian government’s direction, the state-owned coal mining company is issuing bids for 5,000 GAR (gross as received) quality of thermal grade coal.

Coal India Limited said that the two medium term tenders are for a total of six million tonnes (MTs) of coal quantity. There is an option of increasing the quantity of the bid by 100% to 12 MTs, said the coal mining and refining corporation.

For the 6MTs coal sought via competitive bids, Coal India Limited has identified nine destination ports for discharging the coal, 3MTs each at the eastern and western coasts of India.

Coal India Limited to import 6MTs of coal for domestic power plants. Photo courtesy of Ben Scherjon from Pixabay.

The estimated value of the work is valued at INR 3,850 crores for each tranche of 3MTs.

According to Coal India Limited, the tenders are not based on indent but to have coal ready for immediate availability to be used in the future. The company further stated that it is an advance move to strengthen future supplies and have a vendor ready.

The tenure for placing the order is for a period of 12 months starting from July of the ongoing fiscal year till June 2023. The minimum quantity of indent will be 50,000 tonnes.

Coal India Limited stated: “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.”