Coal news and updates

NTPC extends long term tie-up proposal submission date for imported coal

December 15: NTPC Ltd, which had on November 12 floated an expression of interest (EoI) for long term tie-up with companies having operating coal mines outside India to procure imported coal for a period of minimum 5 years, has extended the last date for submission of proposal to January 12, 2015.

The company had initially fixed the last date for submission of proposals to December 2, 2014, but had later on extended it to December 23, 2014.

The company did not provide any explanation for extending the deadline, but ICMW understands it was done to attract larger participation and also because some interested companies had sought more time to prepare their proposals.

NTPC is looking to procure imported coal within the range of 4200 GAR to 6000 GAR of Gross Calorific Value.

As per the EoI, during the operation period, if the supplies are satisfactory to NTPC in terms of quality and quantity and timelines of supply schedule, on the acceptance of mine-owner, NTPC reserves the right to exercise the option to acquire 26% stake in the mine after carrying out the necessary due diligence.

NTPC procures imported coal to mitigate the shortage in supply of domestic coal and during 2013-14 it had consumed about 148 mt Indian coal and another about 10.8 mt imported coal.

For the financial year 2014-15, it has already floated three separate tenders to procure a total of 17.00 mt imported coal. It has already placed order for 12.00 mt imported coal against two tender, while one tender of 5.00 mt is likely to be finalised soon.