The Strategist

India announces first international tender for coal imports

06/10/2022 - 10:33

Coal India Limited, India's state-owned coal mining and processing business, has announced its first international tender for coal imports in order to assure adequate fuel supply to the country's power plants.

Adam Jones
Adam Jones
"Coal India Limited announced a worldwide electronic tender for the delivery of 2.416 million tons of coal for the first time," the company said in a statement.

Deviations of more than or less than 30% of the quantity bid are permitted, according to the tender. Coal with a thermal class of 5000 kcal/kg is desired.

"The current short-term coal import tender for the second quarter of FY23 is not source-dependent, meaning the coal can be sourced from any country," the company stated. The deadline for bids is June 29, and once a price has been decided, Coal India Limited must promptly engage into a contract with the winning bidder to deliver coal.

"The state-owned coal company must then engage into a reciprocal deal with state-owned and independent power plants to which the coal must be delivered. Imported coal must pass through nine ports on the east and west coasts of the country. The winning agency will deliver coal to state-owned generation businesses and independent power units, as per the bidding process," the company states.

The spike in electricity demand in India has exhausted power plant fuel stocks. At the beginning of June, the country's Central Electricity Authority reported that coal stocks at the 173 power plants it oversees were 23.32 million tons, or around 35% of the required supply.

Nine imported coal-fired power stations had critical coal supplies, while 84 Indian coal-fired power plants had less than a fifth of their required fuel reserves.



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