Coal news and updates

CIL to float fresh tender to select agency for imported coal

January 9: Coal India Ltd (CIL), which did not receive even a single response against its notice inviting tender (NIT) to select an agency from among public sector commodity traders to import 5 million tons (+/-30%) imported coal for its consumers till March 2015, is likely to float a fresh trend with revised terms and conditions, an industry source said

"The officials from CIL's marketing department are likely to meet this week to recommend certain changes in the existing NIT to ensure participation from all PSU commodity traders. The recommendation will then be placed before its board of directors," the sources said.

An official told ICMW: "The terms and conditions of CIL's NIT were not practical and as such there was no participation."

"It is not just the way the imports have to be executed, but the time and mode of delivery mentioned in the document are also not feasible. For example, CIL had asked that the selected agency will have to supply the material within 75 days of placement of the order, but this is not feasible," the official added.

"There were other such conditions in the NIT, which were pointed out to CIL during the pre-bid meeting in August 2013, but these suggestions were not considered," the official said.

A CIL official had told ICMW on January 3 that the company could not make some of the changes suggested at the pre-bid meeting because it did not have the mandate of the board.

"The board had approved to go ahead with the import of coal within a particular framework and we had no option other than to follow those," the official had said.