Coal India Limited (CIL), a state owned company has extended its 5 MnT Coal tender’s last date to 6Mar, 2014 with issuing a corrigendum. It has also made some changes in tender document, informed by CIL’s official.
Low production and high demand of Coal has widened demand-supply gap for Coal India. It also faced decline in production by 17 MnT during FY14 (Apr-Dec 2013). In view of growing gap has prompted state owned miner to import and fulfill its signed Fuel Supply Agreement obligations.
CIL has invited very first, state owned bidders in November, 2013 for import bids of 5 MnT Coal. However, it failed to attract any single participants.
The company re-issued the tender with same terms & condition, which was about to end on 27 Feb, 2014. However, after the pre-bid meeting dated on 13 Feb 2014, CIL issued corrigendum with some changes in terms on 14 Feb, 2014. SteelMint noted that CIL changed majorly on Performance Bank Gurantee (PBG) clauses.
The corrigendum says, “The PBG shall be submitted within 60 days of issuance of letter of intent by the supplier.”
It is expected by CIL to receive bids from MMTC, MSTC, STC,PEC and others to import 5 MnT of Coal. This will be supplied to Power producers at Power plant on delivery basis, including all incidental activities for import, handling and transportation of Coal.
All the additional cost of the imported Coal will be passed to the buyer and a service charge by the CIL is also added. Buyers will have to pay 90% in advance to import Coal from CIL and no subsidy will be provided in same. CIL’s senior official denied talking on payment terms.
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