NTPC Ltd, India’s largest power producer has invited global tender for purchase of 2.5 MnT imported coal.
The power company’s total coal requirement has been split in two separate tenders (1.4 MnT and 1.1 MnT) based on its various plant’s location. The procurement process will be carried via online bids on single stage two envelope bidding basis (Envelope-I: Techno-Commercial Bid and Envelope-II: Price bid) among the eligible bidders.
Earlier in Aug’18, NTPC had floated a tender for 2.5 MnT imported coal which was due on 11 Sep’18. As per sources, the tender is in the final stage of conclusion.
As far as the tender for the current month is concerned, the last date to submit bids is 12 Oct’18 at 1400 Hrs (IST), the technical bid will be opened on the same day at 1500 Hrs (IST).
Information regarding qualifying requirement for bidders, technical & financial criteria, and contact details can be seen at TENDER SECTION
Rising Power Demand Drives NTPC’s push for Imported Coal:
NTPC’s reliance on imported coal is negligible, which in turns reflects on the reduction in cost of power thus produced. During FY18, less than 0.2% of the company’s coal consumption was from imported sources, bringing down the average tariff in the year to INR 3.23/KWh as against INR 3.30/kWh in FY17.
Out of the total 167.67 MnT coal received in FY18, the share of imported coal was mere 0.32 MnT coal as against 1.09 MnT in FY17 making a decrease of 71% Y-o-Y in coal imports. Besides, the coal supplied in the period was against the carryover of last awarded contract on Aug’15.
CoalMint had previously reported that a coal purchase tender from NTPC was due on Sep’18, as a part of its program to seek high coal availability.
NTPC’s captive coal production set pace with a reported output of 26.77 LT (Lakh Tonnes) coal from Pakri-Barwadih block in FY18. While coal extraction from another coal block-Dulanga, has also started from 28 Feb’18. Moreover, the company has reached out an agreement with Railways for prioritising dispatch to the plants, to ensure fuel security domestically.
The 5 MnT imported coal purchase tender (2.5 MnT in Aug’18 and 2.5 MnT in the current tender) in FY19 can be seen as a measure to secure additional coal supplies when the domestic coal is finding hard to keep pace with the rising power demand in the country.
The contribution by coal stations in NTPC’s total power generation was 252.36 BU (Billion Units) in FY18 against generation of 237.96 BU last year, registering a growth of 6.05% Y-o-Y.
Generation from coal based units could have been still higher but due to less generation schedule there was opportunity loss of 30.83 BU in FY18, however it had declined 25% Y-o-Y from 41.25 BU in previous year.
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