Tata Power’s fully-owned subsidiary, Coastal Gujarat Power (CGPL), has invited bids for supply of 50 million tonnes (mn t) of thermal coal from different origins on an FoB basis for its power utility in Gujarat.
The period of supply would be valid for five years starting from 1 Jul ’21 to 31 Mar ’26, with the option to extend it further by another five years at the buyer’s end. The last date for bid submission is 28 Jun ’21.
Despite the government’s appeal to curtail imports, power utilities like CGPL are forced to continue with costlier imports, as these are specially designed to operate on imported coal.
In fact, the company was the second-largest coal importer amongst the power utilities, by registering coal volumes of 9.82 mn t during FY ’21.
Bid criteria
Quantity: The annual requirement has been marked at 10 mn t, which should comprise coals of various grades, ie, low calorific value (LCV), medium calorific value (MCV) and high calorific value (HCV), as per the specifications stated in the tender document.
The bidders are required to quote for a minimum quantity of 0.5 mn t per annum.
Logistics capability: The intended shipment size for supply is 160,000 tonnes (t) (+/- 10%) at vessel owner’s option.
Against the requirement, interested bidders should provide at least one Capesize volume shipment for LCV category, four Capesize volume shipments for MCV and two Capesize volume shipments for HCV on a monthly basis.
Technical: The bidders are intended to supply coal from a specified mine; however, the bidder may offer coal from multiple mines, provided these meet all quality parameters.
In case the interested bidder is a miner, the bidder should have:
i) Country-specific mining license which should remain valid during the entire contract agreement period.
ii) Coal production for the last five years from the proposed mine of equal or more than average of 1 mn t.
iii) Executed at least one single order in the last three years of quantity equal to or more than 0.5 mn t per annum for such coal.
The tender also remains open for participation from traders, provided they submit corporate guarantee from the miner from whom they intend to source coal.
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