Coal India Ltd (CIL) has issued a tender to purchase imported coal for power generation companies (gencos) following the center’s directive to fill shortages in the local coal supply chain. CIL has invited bids to supply 2.4 million tons of coal to be delivered in the period from July to September 2022. CIL said in the tender document that the estimated value of the contract is Rs 3,100 crore.
The imported coal will be supplied to state-owned power generation companies and independent power producers (IPPs), 1.2 tons each. IPPs include Sembcorp Energy, JP Power, Avantha Power, Lanco, Rattan India, GMR, CESC, Vedanta Power, Jindal India Thermal among others. The states that will receive the imported coal for their power plants are Punjab, Gujarat, West Bengal, Tamil Nadu, Jharkhand and Madhya Pradesh.
Last month, the Department of Energy directed CIL to import coal for state and private ginseng. It came two weeks after the state and private company Jencus asked to import 10 percent coal for blending, but were later asked to keep their tenders “on hold”. Several countries have expressed reluctance to import coal and have asked CIL to arrange dry fuels from world markets.
State and private Ginkos companies will cumulatively require 38-40 metric tons of imported coal for 10 percent blending. NTPC owned by the central government is in the process of issuing tenders worth 20 million tons to meet the target of mixing imported coal. Recently mentioned in this paper, NTPC awarded 6.25 metric tons of tender imported coal worth Rs 8,300 crore to Adani companies.
Due to the high cost of imported coal, the energy tariff (from NTPC units) is set to rise by at least 50-70 pounds. This must be borne by consumers. As far as government and private ginsengs are concerned, they will need regulatory approval to pass on the additional cost of imported charcoal to consumers. Based on Article 11 of the law again, last week the Ministry of Electricity allowed government and private units to impose compensatory tariffs instead of importing coal.
On the other hand, the union coal ministry has questioned concerns about coal shortages in the coming months saying that there is enough domestic stock available and that it is up to power generators to stockpile before the monsoon months. Senior Coal Ministry officials said there are 20 million tons of power plants in stock, which is enough for nine days of operations.