Coal news and updates

TANGEDCO places order for 0.6 mt imported coal

The Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) has placed an order to procure only 600,000 tons of imported steam against its tender for 4.5 million tons (mt) floated in December 2015, according to information available with ICMW.

The order was placed with Chettinad Logistics Pvt Ltd despite it having emerged as the sole bidder, industry sources said. Generally, PSU companies do not place an order against any single bid, sources said.

According to industry sources, not even a single known big supplier of imported coal had participated in the 4.5-mt tender from TANGEDCO that was floated on December 7 for delivery of coal during the period April-September, 2016.

“Despite opposition from government officials and vigilance officers, the power generator has gone ahead and placed an order for 600,000 tons of coal with Chettinad Logistics,” the sources claimed.

Chettinad Logistics provides logistics services to business and industrial units as well as power utilities in southern India. The company, a subsidiary of Chettinad Cement Corp, was incorporated in 1999 and is based in Chennai.

TANGEDCO officials could not be contacted by ICMW for their views.

Meanwhile, after placing the order of 0.6 mt with Chettinad, TANGEDCO floated another tender or has re-tendered for the balance quantity of 3.9 mt of imported steam coal for supply between May and November, 2016.

Of the total quantity against the re-tender volume, 3.1 mt has to be delivered through Kamarajar Port or Karaikal Port and the remaining 0.8 mt though VOC (Tuticorin) Port.

As per the previous tender for 4.5 mt floated on December 7, 2015, delivery against which was to be made between April and September, 2016, 3.5 mt was to be delivered through Kamarajar Port and the remaining 1.0 mt through VOC (Tuticorin) Port.