Coal news and updates

NTPC gets only two bids for 5.0 mt imported coal tender

September 20: Only two traders – Adani Enterprises and Coal & Oil – have finally submitted bids in response to the global notice inviting tender (NIT) of NTPC Ltd to procure 5.0 million tons (mt) imported coal for its 16 power units spread over various parts of the country, according to information available with ICMW.

Incidentally, the company had floated the tenders in July itself, but had scrapped them due to lukewarm response. It had re-floated the tender in August, but had extended the opening date to September 19.

A source in NTPC, on September 20, confirmed that only two bids have been received.

"Though the reason for less participation is not very clear, it appears that the specification of these tenders was slightly different compared to our earlier tender and qualification requirement was also on the higher side. This probably has eliminated a lot of traders from participating in the tender," the source said.
Asked if the company is thinking of scrapping this tender as well and come out with other tenders with slightly relaxed terms, the source said, "We are evaluating the received bids and if everything goes well we may go ahead with placing the order."

Market sources said Adani and Coal & Oil were the only bidders among six of the total seven separate tenders floated, whereas Adani had emerged as the single bidder in one of them.

"As Adani had emerged the single bidder in one of the seven tenders which had invited bids on CFR basis, that particular tender has already been scrapped and a new one floated on September 9 with the bid submission date as September 25," the sources said.

NTPC was looking to procure 0.4 million tons coal for its Dadri, Tanda, Unchahar plants, 1.25 mt for Farakka, Kahalgaon, Badarpur and Barh, 0.75 mt for Korba, Sipat and Mouda, 0.30 mt for Simhadri, 0.70 mt for Simhadri and Ramagundam, 0.85 mt for Singrauli, Rihand and Vindhyachal plants and 0.75 mt for Talcher and Talcher Kaniha.

According to information available with ICMW, NTPC has scrapped Simhadri’s 0.3 mt tender and the new one is for 0.5 mt.