Electricity will be made from outside coal: Country’s largest coal producer has issued tender, will import 24 lakh tonnes of coal
The country’s largest coal producer Coal India Limited (CIL) has issued a tender for the purchase of imported coal. CIL has invited bids for the supply of 24 lakh tonnes (MT) of coal for the period July to September 2022. The last date for bidding is June 29. The estimated value of the contract is Rs 3,100 crore. The Center had directed CIL to import coal to meet the shortfall in the domestic coal supply chain.
The imported coal will be supplied to 7 state-owned power generating companies (gencos) and 19 independent power producers (IPPs). 1.2 MT of coal will be supplied to all. The IPPs include Sembcorp Energy, Jaypee Power, Avanta Power, Lanco, Ratan India, GMR, CESC, Vedanta Power, Jindal India Thermal. The states where Gencos will get imported coal are Punjab, Gujarat, West Bengal, Tamil Nadu, Jharkhand and Madhya Pradesh.
CIL on Saturday will issue another tender for delivery in the period July 2022-June 2023.
CIL Board approves 2 tenders
Coal India, in its board meeting held on June 2, had approved the issue of two international tenders for sourcing coal from abroad. There was one short term and one medium term tender. The short term tenders issued for the second quarter (July, August and September) of FY23 are agnostic. This means coal can be imported from any country.
CIL has no experience in coal imports
CIL has absolutely no experience in coal imports, but still finalized and floated the tender in record time. The imported coal will be routed through nine ports located on the east and west coasts of the country. The successful agency, selected in the bid process, will directly deliver the coal to the power plants of Genco and IPP in the state.
Stock at critical level in 95 plants
Let us also tell you here that according to the Central Electricity Authority Daily Coal Report (7 June 2022) amid the ever-increasing demand for electricity in the country, 95 out of 173 thermal power plants have coal stocks at critical levels.
