To tide over a possible shortfall in availability of coal during the following monsoon months, Coal India (CIL) has floated an global competitive bidding e-tender to import 2.416 million tonnes (mt) of coal. The import would be for July-September period of the current fiscal year, said a press statement issued by the company.
CIL’s board had, on June 2, given its nod for the company to proceed ahead with the allotment of two international tenders for sourcing coal from overseas, a short-term and a medium-term tender. The current short-term tender for import of coal, for second quarter of the current fiscal, is source doubter. This means the coal can be sourced from any country.
The last date for the receipt of bids is June 29. There is an option of pre-bid meeting on June 14 to seek clarification on any modulation of the tender. After the price discovery, CIL will immediately execute a contract with the successful bidder for supply of coal. Then the state owned coal miner can enter into a back to back agreement with state Gencos and IPPs to whom coal has to be supplied.
During summers the demand is very high due to the intense heat and Coal India typically draws down on its stocks. During the emerging monsoon months production usually drops. The intense heat wave during the last 1-2 months, the lower stock at CIL pithead and thermal power plants at the beginning of the year has only compounded the problem.
The cumulative total stock at CIL pithead and thermal power plants was at 84.2 mt in end March 2022 as against 127.9 mt in end March 2021. “Last year the system was close to breaking point but we managed due to the high pithead stock at Coal India. This year, the opening stock is relatively lower so the next 3-4 months will be very crucial,” said, Ritabrata Ghosh, Assistant Vice President, ICRA,