Coal India Limited (CIL) the world largest Coal miner finally floats a long awaited tender to import 5 MnT of coal.
CIL indicated earlier in September, that it will import around 15 MnT of Coal through state owned trading agencies like MMTC, MSTC, STC, etc in current financial year.
As first step, CIL has released tender for the purchase of 5 MnT of coal in order to comply with the agreement with its purchaser (Power producers).
CIL has estimated that the value of work, on the basis of delivery at plant is INR 30 billion for 5 MnT Coal. According to CIL, estimated cost of coal would be around INR 6,000/MT on the basis of delivery at plant.
CIL has signed around 156 out of 173 new Fuel Supply Agreements, under which 65% of the quantity from the domestic sources and other 15% will be supplied through imports under the new FSA.
CIL will pass the additional cost of imported coal to buyers at landed cost, plus a service charge and there will be no subsidy in pricing. Also, buyers have to pay 90% in advance for imported coal.
On the basis of intent of purchase from power producers, CIL will import coal through government importing agencies and supply to the Power producers.
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