Coal news and updates

CIL chief expects good response to coal import re-tender

February 13: Coal India Ltd (CIL) Chairman S Narsing Rao, on February 12, said he expects to receive a good response to Coal India's re-tender to appoint an agency to import 5 million tons (mt) (+/-30%) imported coal.

The company's initial tender to appoint an agency to import the coal for supply to its power sector consumers did not see any response from public sector companies.

"The first tender was not successful as bidders did not participate. They had apprehensions over a couple of clauses in the tender. We have once again published the tender with modifications. They will possibly respond now," Rao told ICMW.

He said though it is an open enquiry, CIL has restricted participation only to PSU suppliers.

Asked if the company has received any firm commitment from any of the consumers to procure imported coal through CIL, Rao said, "There is an indicative requirement of about 11.5 million tons. I will not say it is a firm commitment."

"I will be able to term the indicative requirements as firm commitments only after we freeze the prices and communicate this and other conditions to our power consumers and they accept the same and place the orders with us," he said.

"Till we get the orders from those who had indicated their intentions to purchase imported coal through us, it would remain only an indicative commitment," Rao added.

He further said that 11.5 million tons is a kind of indent and if the consumers find CIL's prices higher than what they are already paying, they may not take imported coal through CIL.

Asked if CIL would continue to keep pressure on supplying imported coal only after getting 100% advance, Rao said, "We may agree to supply even after getting 85% advance as they are mostly PSU companies and the matter can be settled amicably among PSU companies. This is not a big deal."