Coal India (CIL) has cancelled its maiden tender for short-term imports of coal, in which Adani Enterprises had emerged as the L1 bidder. Adani had quoted Rs 4,033 crore for the supply of 2.416 million tonne (mt) on a freight on road basis, but CIL ultimately didn’t issue the contract’s letter of award (LoA) to Adani.
However, it has already issued a LoA to Indonesian agency Bara Daya Energi Consortium for imports of 6 mt in the medium term and a contract has been given for importing 791,000 tonne during August-September, sources in the know said.
While CIL has confirmed that it has cancelled its maiden tender, it didn’t want to cite any reason. Earlier, sources in CIL had said that although Adani has emerged as the L1 bidder, it would only make an official declaration informing the stock exchanges after making a proper financial evaluation.
Sources in the trade said the company found Adani’s financial bid to be high, wherein CIL found a formidable price difference against their estimated tender value of `3,850 crore, for 2.416 mt of imports.
But Bara Daya Energi Consortium, the lowest bidder for 6 mt of imports, quoted Rs 4,331 crore and Rs 4,497 crore for the eastern and western coast tenders, respectively, against an estimated tender value of Rs 10,000 crore.
For the 791,000 tonne of imports, which CIL has already ordered for the month of August and September, the gencos that would be the buyers are Adhunik Power, SAI Wardha, Rattan India, Avantha Power & Infrastructure, CESC, Lanco Amarkantak Power, Jindal India Thermal Power, ACB India, KSK and DB Power.
CIL’s board on June 2 had decided to proceed with issuance of international tenders to source overseas coal on two counts. First, for the purpose of blending, for which the short-term tender was planned on the basis of the number of indents made, and second, two medium-term tenders were planned to keep a certain quantity of coal on tap, so that the power sector doesn’t face any dearth of coal during the monsoons.
CIL received indents from seven state gencos and 19 independent power producers for a total of 2.416 mt of coal, and floated its maiden tender within a week of receiving the indents.
The CIL board, after the opening of the bid, finally decided to cancel the short-term tender and supply the indented import quantity as well against the medium-term tender floated, meant for keeping coal in tap.