Coal India Ltd (CIL) has not entered into any fresh contracts for importing coal on behalf of State Gencos and independent power producers after the one-year validity period of medium-term contracts ceased to exist from June 30.
Following the government directive last year to shore up coal stocks at the indigenous coal-based power plants Coal India had floated two international competitive bidding e-tenders of 3 million tonnes (MTs) each, to import coal. The bids were for 5,000 GAR (gross as received) quality of thermal grade coal. These two medium-term tenders for a total of 6 MTs coal quantity had an option of increasing the bid quantity by 100 per cent to 12 MTs.
According to company official, since the tenure for placement of orders was for a period of one year beginning July ’22 till June ’23, and with no fresh directive from the government, the company has not issued any fresh tenders or contracts. The minimum indent quantity of the two tenders was 50,000 tonne per order.
The tenders were not indent based but to keep coal on tap for immediate availability and use in the future, CIL said adding that it is an advance action by CIL in fortifying future supplies and keeping a vendor ready. As and when indented by the state generation companies and independent power plants orders were placed to ship the coal into the country. From the date of placing the indents delivery of coal would be made within 30 days at the free on rail destination of the power plants which seek coal, according to the tender. This meant delivery at the doorstep.
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For the 6 MTs coal sought through competitive bids nine destination ports were identified for the discharge of coal, 3 MTs each at the eastern and western coasts of the country. The estimated value of the work was pegged at ₹3,850 crores for each tranche of 3MTs.
In fact, these two tenders were close on the heels of a short-term e-tender of similar nature that the state-owned coal mining behemoth issued on June 8 last year. However, that was for a limited period and limited quantity.
Meanwhile, CIL continued to sustain its production pace in July. CIL, at 53.6 MTs posted 13.4 per cent growth in July ’23 over the same month last year. The output leapt by 6.3 MTs compared to 47.3 MTs production of July ‘22. According to the company, CIL’s production soared to 229.1 MTs till July ’23 in the current financial year. CIL’s total supplies peaked at 58.3 MTs in July ‘23, posting a strong 7.2 per cent growth over 54.4 MTs of July ‘22. The increase in absolute terms was 3.9 MTs.
Total supplies during April-July ’23 to all consuming sectors were up to 244.5 MTs, reporting a 5.7 per cent growth over a high base of 231.2 MTs of the same period last fiscal. Supplies on a year-on-year basis have witnessed a 13.3 MTs expansion during the first four months of the financial year in reference.