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Coal India launches maiden tender to import coal

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Coal India Limited, world’s biggest coal miner, has announced that it has published a tender to import 2.42 Million tonnes (MT) coal. The coal will be used both by state power generation companies (gencos), as well as independent power plants.
Coal India Limited (CIL), in an regulatory filing to stock exchanges, stated that Wednesday’s international competitive bidding etender was the first ever. It sought bids from interested parties for coal imports of 2.416 Million tonnes (MT).
Based on indents from the state generating firms (gencos), and independent power plant, the coal that is being sourced for them is the following: According to the government-run miner, it is for the July-September period in the current fiscal year.
The tender allows for a variation exceeding or below 30% of the bid quantity.
The coal sought is 5,000 GAR (gross As Received) thermal grade coal.

Coal India Limited issued an international tender to import coal. This was after the Government of India had nominated CIL to act as a centralised agency to increase coal supplies to state power plants and independent power stations (IPPs). At a time when coal demand is high,
Board of Coal India Limited, at its meeting held 2 June, gave its consent for the company to proceed with the issuance of two international tenders in order to source coal from overseas. The tenders were short-term and medium-term.
The current short term tender for coal imports, Q2 of the financial years 2022-223, is source agnostic. This means that coal can be obtained from any country.
CIL is still unfamiliar with coal import, but Coal India stated in a statement that the company has completed and floated the tender within one week of receiving indents for the 7 State Gencos (and 19 IPPs) for a total amount of 2.416 Mts.
29th June is the deadline for bidding. Pre-bid meetings are available on 14 June for clarifications on tender nuances.
CIL will immediately enter into a contract with the winning bidder to supply coal after the price discovery. The state-owned coal miner must then sign a back-to–back agreement with IPPs and state gencos.
The country’s 9 ports will be used to transport the coal it imports. The company stated that the successful agency selected in the bidding process would deliver coal to power plants of state-gencos or IPPs.

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