Coal news and updates

NTPC floats EoI for long-term tie-up on imported coal

November 12: NTPC Ltd, India’s largest thermal power generation company, has floated an expression of interest (EoI) for long-term tie-ups with companies having operating coal mines outside India to procure the imported variety of the fuel for a minimum period of 5 years.

NTPC is looking to procure imported coal within the GCV range of 4,200 GAR-6,000 GAR.

The last date for submission of offers is December 2, 2014.

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

For financial year 2014-15, it has already floated three separate tenders to procure a total of 17 mt of imported coal. It has placed orders for 12 mt of imported coal while one tender for 5 mt is likely to be finalised in December.

Earlier, on October 22, the company had floated an EoI for strategic acquisition of stakes in overseas coal mines.

As the requirement of imported coal for sustaining generation at its various power stations is likely to continue, it is felt that long-term tie-ups for imported thermal coal with interested companies and firms across the globe may be explored.

For supply of the imported fuel, interested parties may choose FOR power station basis to various power stations of NTPC located across the country or on CIF basis at specified ports or on FOB basis.

However, preference shall be given to mine-owners who are able to supply on FOR basis.

As per the EoI, during the operation period, if NTPC is satisfied in terms of the quality, quantity and timelines of the supply schedule, provided the mine-owner accepts the proposal, the power behemoth reserves the right to exercise the option to acquire 26% stake in the mine after carrying out the necessary due diligence.