The bidding saw Adani Enterprises quoting Rs 4,033 crore for the supply of 2.416 million tonnes of coal on a freight-on-road basis
Coal India Ltd (CIL) floated its first coal import tender on behalf of power generation companies and Adani Enterprises Ltd has emerged as the lowest bidder in the bidding, according to an ET report. The bid, which was opened on Friday, saw Adani Enterprises quoting Rs 4,033 crore for the supply of 2.416 million tonnes (mt) of coal on a freight-on-road (FOR) basis.
Mohit Minerals was next with a Rs 4,182-crore bid, followed by Chettinad Logistics at Rs 4,222 crore. This imported coal will go to seven state generating companies and 19 private power plants, according to the report. It added that Adani Enterprises has bagged multiple coal import contracts from NTPC between January and June.
The Adani Group in December last year shipped out the first consignment of coal from its Carmichael mines in Queensland, Australia. Industry insiders said it is also eyeing Coal India’s two e-tenders totalling 6 mt, for which bids have to be submitted by Tuesday.
A total of 11 importers and some overseas traders had shown interest in the tender during the pre-bid meeting, Coal India had said earlier.
After the closing of bids, Coal India will execute a contract with the top bidder, entering into a back-to-back agreement with state gencos and independent power producers (IPPs), who will get the imported coal.
“The bids received are being looked into and will require approval from Coal India’s board,” according to the ET report quoting a government official. Coal India Ltd (CIL) and Adani Enterprises did not offer any comment, said the report.
Read More: Windfall Tax On Crude Oil: What Is It; How Will It Impact Companies, Govt Revenues?
CIL is importing coal as the central government is looking to build enough stock at power plants before monsoon season affects coal mining, leading to a decrease in supply. The nation’s power demand peaks after monsoon due to an increase in requirements from the agriculture sector and warm weather conditions.
After price discovery through bids, CIL will execute a contract with the successful bidder and also enter into a back-to-back agreement with state gencos and independent power producers (IPPs) receiving the imported coal. The coal imported will be routed through nine ports located on the east and west coast of the country. The selected agency will deliver coal at the doorstep of the power plants of state gencos and IPPs, according to the report.
The thermal power plants have 26.8 MT of coal stock, the Central Electricity Authority’s latest data showed. The plants will also blend this stock with domestic coal. The power plants have been asked to import 10 per cent of their coal requirements, which will be done by CIL on their behalf.
