SAIL’s Coking Coal Import Tender Fetches Poor Response

SAIL, the Indian steel giant,has received poor response for its coking coal tender. The company has received  only two bids for 0.3 MnT required coal.

SAIL had invited tender to purchase 0.5 MnT imported grade freshly mined prime quality coking coal in July’15. It had asked for supply of the mentioned material for a period of 7 months from Sept’15 to Mar’16. The last date of submission of bids was  22 July’15 which was changed to 31 July’15 owing to poor response from bidders. Even after such huge amount and extended time span for submitting bids, the company received very weak response. Merely two firms opted to supply the required grade coking coal, that too for less quantity than tendered by SAIL.

Stern terms and conditions mentioned by the PSU can be a probable reason for  such poor response to the bid.

Kolkata based Star Trading House and Global Trader have proposed to supply 0.3 MnT of required material for the mentioned period. Both the firms have offered to supply 1,50,000 MT individually. The company had received bid price for the material  in the range of  USD 98-100/ MT.

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Source: SteelMint Research