Coal news and updates

CIL may invoke force majeure for CESC’s imported coal

January 5: Coal India Ltd (CIL) may implement the force majeure clause against supply of around 40,000 tons of imported steam coal to Kolkata-based CESC Ltd and has also delayed supplies to NLC Tamilnadu Power Ltd, an official from the company said.

“The interest shown by CESC Ltd in procuring about 40,000 tons of imported coal in two parcel sizes through us is difficult to deliver because counter-offers for such a small quantity have not come. Because of this, we may implement the force majeure clause,” the official said.

He further said that supplies of around 120,000 tons of imported coal to NLC Tamilnadu Power have been delayed at the request of latter. “NLC Power had requested us to delay the supplies due to some internal issues,” the official said.

ICMW had reported last month that CIL has commenced supply of imported coal to Nabha Power and Talwandi Sabo power plants in Punjab after one vessel carrying 1.80 lakh tons of coal had arrived at Mundra Port.

The material from Mundra Port was being supplied to both the plants in small batches by railway rakes.

CIL had, in September 2014, placed an order with two suppliers – Adani Enterprises and KISPL – to supply 0.532 million tons of imported steam coal to CESC Ltd (40,000 tons), NLC Tamilnadu Power (120,000 tons), Nabha Power and Talwandi Sabo Power plants (372,000 tons).