Coal news and updates

CIL pre-bid meet on imported coal with vendors on Dec 4

November 28: Coal India Ltd (CIL) has convened a pre-bid meeting on December 4 with prospective agencies (vendors) from among government-owned companies or public sector entities that are allowed to submit trade margin bids in response to its notice inviting tender (NIT) for importing 5 million tons (+/-30%) of coal for power producers.

A total of four companies – MMTC Ltd, STC Ltd, PEC Ltd and MSTC Ltd – are expected to participate in the NIT and attend the meet.

The purpose of the meeting is to clarify issues and answer questions on any matter that may be raised by the vendors, an official from the company said.

The agency (vendor) thus selected would import coal at its own expenses on behalf of CIL and shall be responsible for supplying the same to power producers at their plants.

The requirement of 5 mt is based on the current status of the fuel supply agreement (FSAs) between CIL's subsidiaries and power plants and the firm requirement is likely to vary widely with further signing of FSAs.

"Keeping in view the likely commitments to supply imported coal to eligible and willing power plants, the variation in quantity may be +/-30% during the contract period," the official added.

CIL subsidiaries propose to supply coal to about 173 power stations having an aggregate generation capacity of about 78,000 MW which are commissioned or being commissioned
between April 2009 and March 2015.

Out of the overall supply commitments under the FSAs, about 15% of the coal requirement is contemplated to be supplied from imported sources, the official said.

CIL is looking to procure imported coal in two types as per the following specifications: