Coal news and updates

Adani emerges L1 in 3 of the 4 tenders of NTPC for 7.0 mt imported coal

July 28: Adani Enterprises Ltd has emerged as the lowest bidder (L1) in three of the four tenders floated by NTPC Ltd to procure a total of 7.0 million tons (mt) of imported coal, an official told ICMW.

“Adani Enterprises has emerged as L1 in three tenders for a total quantity of 4.95 mt coal whereas Gandhar Oil has emerged L1 in one tender for total quantity of 2.05 mt,” the official said.

“The tenders in which Adani has emerged L1 are 1.55 mt for supply to Dadri, Sipat and Mouda plants, 2.25 mt for Talcher, Kaniha, Farakka, Kahalgaon and Barh plants and 1.15 mt for Rihand and Vindhyachal plants. Gandhar Oil on the other hand has emerged L1 for supply of 2.05 mt coal to NTPC’s Simhadri and Ramagundam plants,” the official added.

“The exact price is difficult to re-collect, but on an average the L1 bidders have quoted a price of around $65 per ton CIF eastern coast ports. The price will go up slightly for delivery of cargo on western coast ports due to additional freight cost,” the official added.

“The plant delivered price of each cargo would be slightly higher,” the official added.

Industry sources, quoting some reports, said the delivered price for Simhadri and Ramagundam is around $79 .00 per ton, $130 per ton for Dadri, Sipat and Mouda plants and also Vindhyachal and Rihand plant whereas the delivered price was around $102 per ton for Talcher, Kaniha, Farakka, Kahalgaon and Barh plants.

On June 27 ICMW had reported that a total of six companies – Adani, KISPL, Agarwal coal, Maheswari Brothers, Gandhar and Trimax - were in fray for NTPC’s above tender.

Asked whether the orders have already been placed with these companies, the official said, “The order can be finally placed only after NTPC’s board meeting which may be convened by middle of August though NTPC sometime convenes board meetings on emergency basis as well.”

“The supplies against the tenders are likely to commence from September assuming that order will be placed by middle of August,” the official added.

NTPC had floated four separate invitation for bids (IFB) for procurement of imported coal and the last date of submission of bids and techno-commercial bid opening dates was initially fixed to June 5, but was extended to June 12 and then again to June 25.