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Indonesian Firm Outbids Adani Enterprises In CIL's Medium-term Coal Import Tender
CIL had floated two medium-term tenders on 10 June for the selection of an agency to supply 3 million metric tonnes of imported steam coal between July 2022 and June 2023
Photo Credit : Photo by Dominik Vanyi on Unsplash
Bara Daya Energi, an Indonesian firm in collaboration with an Indian consortium, on Thursday emerged as the lowest bidder in Coal India Ltd’s (CIL) medium-term tender for coal imports, floated on behalf of power generating companies.
CIL had floated two medium-term tenders on 10 June for the selection of an agency to supply 3 million metric tonnes of imported steam coal on a Freight on Road (FOR) destination basis at delivery points of purchasers (power generating companies) through a port of discharge located on India’s western and eastern coasts. The duration of supply is from July 2022 to 30 June 2023.
As CIL opened the bids on Thursday afternoon, Bara Daya Energi emerged as the lowest bidder with a quoted amount of Rs 4,331 crore for the Eastern Coast tender. Adani Enterprises was the only other firm in the race and had quoted Rs 5,080 crore.
Bara Daya Energi quoted Rs 4,497 crore for the Western Coast tender, whereas Adani Enterprises quoted Rs 5,035 crore.
After the price discovery, CIL will immediately execute a contract with the successful bidder for supply of coal.
Pipavav, Mundra, Dahej, Navlakhi, Mormugao, Dharamtar and New Mangalore ports will be utilised on the Western Coast.
Earlier on 1 July, Adani Enterprises had emerged as the lowest bidder in CIL’s maiden tender for coal imports, floated for the supply of 2.416 million metric tonnes of coal. Bara Daya Energi was rejected during the technical evaluation of this tender due to the submission of invalid power of attorney and non-submission of the consortium agreement.
The participation of firms, though, has been minimal even though on 21 June, CIL had informed that eleven coal importers had shown interest in these tenders.
Last month, the power ministry directed CIL to import coal for state and private gencos. This came two weeks after state and privately-owned gencos were told to import coal for 10 per cent blending but were later asked to keep their tenders ‘in abeyance’.
The government is rushing to make more coal available for utilities as shortages in the July-September quarter are expected to be 15 per cent wider than initially estimated due to expectations of higher power demand.
With monsoon hitting many parts of the country, Coal India Chairman Pramod Agrawal recently said the state-owned firm is geared up to meet its part of committed coal supplies to the power sector and also stressed that building up dry fuel stock timely by electricity-generating plants will be crucial.
Coal India has previously blamed lower output from import-based coal plants, adding that fewer imports put more pressure on domestic mining.
Meanwhile, provisional data from the Ministry of Coal for June 2022 showed that India’s coal production rose by 32.57 per cent to 67.59 million tons (MT) from 50.98 MT in June 2022 as compared to June 2021. Also, coal despatch increased by 20.69 per cent to 75.46 MT from 62.53 MT in June 2022 compared to June 2021.
According to official data, coal-based power generation also increased by 26.58 per cent to 95,880 million units in June.