Coal India Limited (CIL) has finally received interest for its 5 MnT Coal tender. However, it received bid only from one participant.
CIL’s two time extended Coal supply tender has finally got bid from MMTC as only participant. MMTC has submitted its bid for supplying 5 MnT of imported Coal to CIL in last week. However, its bid is under evaluation and result will be disclosed soon.
CIL extended its 5 MnT Coal tender with last date to 6 Mar, 2014 by issuing a corrigendum. It has also made some changes in tender document, informed by CIL’s official.
Low production and high Coal demand have widened demand-supply gap for Coal India. During FY14 (Apr-Feb), CIL produced around 20.1 MnT Coal less than its target and its offtake dropped to around 17.8 MnT against targeted during the same period. In view, growing gap has prompted state owned miner to import and fulfill its signed Fuel Supply Agreement obligations.
As per the fuel supply agreements entered between the CIL and its consumers in 2012, CIL proposed to meet 15 per cent of the fuel needs through imports on a cost-plus basis.
For importing Coal, 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 participant.
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 earlier that CIL changed majorly on Performance Bank Guarantee (PBG) clauses.
The corrigendum said, “The PBG shall be submitted within 60 days of issuance of letter of intent by the supplier.”
It was expected by CIL to receive bids from MMTC, MSTC, STC, PEC and others to import 5 MnT Coal, to supply power producers at Power plant on delivery basis, including all incidental activities for import, handling & transportation of Coal. However, only MMTC shown interest and submitted its bid to supply Coal.
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