India’s largest coal producer Coal India Ltd (CIL) has begun tender process for procuring imported coal for thermal power plants at a time when domestic supplies are struggling to keep pace with rising demand.
As the government has directed the plants to import coal for blending, several plants cited discomfort against raising imports through tenders. Hence, it turned towards CIL.
Responding to the call, CIL has issued a global tender for purchase of 2.416 million tonnes (mnt) of imported coal via single-stage two-part bidding process.
It is not the first time when the company is importing coal to supply to plants. Earlier, in FY2015-16 (FY16), it had supplied imported coal to the power plants under fuel supply agreements (FSAs) but the process was carried out by MSTC.
This time, CIL has deployed its in-house e-procurement cell to execute the process.
Beneficiary plants
The consignment for imported coal has been floated on behalf of 7 state-owned power plants and 19 independent power plants. These include state-electricity boards from Punjab, Gujarat, West Bengal, Tamil Nadu, Jharkhand and Madhya Pradesh.
The current tender is for short-term delivery to be executed by July-September 2022.
The shipment would be routed through 9 ports located in east and west coast, but the final delivery is intended on ‘FOR Destination’ basis at defined plant locations.
Bidding process
The eligible participants, qualifying the technical and financial requirements, can take part in the bidding process by submitting techno-commercial and price bids. The price bid comprises of FOB price, ocean freight, marine insurance charges and other incidental costs.
Coal Specification
Gross Calorific value (ARB): 5,000 kCal/kg
Total moisture (ARB) + Ash (ADB): 35%
Sulphur (ADB): 0.9%
Size (less than 2.36 mm): not exceeding 10% of quantity
The coal can be sourced from any foreign country provided it should fall under the specification of quality parameters which if failed, would be marked for rejection.
After the price discovery, CIL would immediately execute a contract with the successful bidder. The last date for the receipt of bids is 29 June.
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