Participant’s Pre-Bid meeting for CIL’s 5 MnT Coal Import Tender rescheduled

Coal India limited (CIL) has called market participants to discuss on tender at CIL’s Kolkata office yesterday. However, it has been rescheduled to 6 Dec, 2013 as informed by the CIL officials to SteelMint.

CIL has invited state owned trading companies like MMTC, MSTC, STC etc. to import 5 MnT of Coal. It will be supplied to power producers on delivery at power plant basis, including all incidental activities for import, handling and transportation of Coal.

Market traders are interested towards CIL’s Coal import tender. It is expected that, the winning state owned company will issue tenders for procuring Coal from private suppliers of an allotted quantity.

A trader based in Mumbai said, “State owned companies have to issue tenders for Coal procurement, in which other private miners or traders can participate to supply Coal to the winning company. However, we cannot say the terms of tender as for now, but CIL will be taking material from state owned companies on delivery at power plant basis.”

While talking to SteelMint the CIL’s senior official said, “Participations will be only from state owned companies or public sector entities, and the winner may pass on the tendered quantity to miners or other suppliers, by collecting competitive bid through tenders. This depends on their modality of working.”

Official added “Currently we have invited a tender for 5 MnT of Coal and for the same, a pre-bid meeting was scheduled yesterday, but now it has been rescheduled on Friday”

“We are not sure about the next tender, as we have not received more interest from the power producers, and if any requirement or interest received, we may notify accordingly.” CIL official added.

CIL evaluated total cost of imported Coal on the basis of delivery at plant will be around INR 30 billion for 5 MnT, which may cost around INR 6000/MT.

All the additional cost of the imported Coal will be passed on to the buyer, plus, a service charge by the CIL. Buyer will be paying 90% in advance to import Coal through CIL and no subsidy will be provided in same. CIL senior official denied talking on payment terms.