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Coal India may not need to import entire 6 m tonne kept on tap

Coal India (CIL) may not need to import the entire 6 million tonne kept on tap and has so far placed schedules for delivery of only 2.83 lakh tonne from overseas.

On the basis of indents and advance made by state gencos and independent power producers (IIPs), CIL has placed delivery schedule of 2.83 lakh tonne of coal from Indonesia, for which Bara Daya Energi Consortium has been given the contract. Of the 2.83 lakh tonne, three vessels carrying a total of 2.13 lakh tonne have already reached Indian shores and another vessel carrying 70,000 tonne is in transit. The ship in transit is expected to reach the port of destination by the end of this month, CIL CMD Pramod Agrawal said, adding that the port of destination would be an eastern coastal port.

So far, the state gencos of Tamil Nadu and Karnataka have procured coal.

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According to a senior CIL official, it doesn’t seem that indents will be made to import the entire 6 MT on tap. Most state gencos have been able to create a stock of nearly 25 days at their plant head with CIL enhancing domestic coal supplies. At such a juncture, power plants are likely not to indent for imported coal, the official said.

In June, CIL decided to float three tenders — one short-term tender for imports of 2.416 million tonne and two medium-term tenders of 3 MT each with a scalable option of another 3 MT each, taking the total volume of medium-term imports to 12 MT.

While the short-term tender in which Adani emerged as the L1 bidder was cancelled, Indonesian firm Bara Daya was roped in to serve the medium-term tenders. Bara Daya had quoted Rs 4,331 crore and Rs 4,497 crore for the eastern and western coast, respectively, against an estimated tender value of Rs 10,000 crore.

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The letter of authorisation (LOA) was given to the Indonesian agency for importing 6 MT in July with a contract to import 791,000 tonne during August-September. But till now, a shipment of only 2.83 lakh tonne has been possible, ruling out any possibility of opting for the scalable option and with least possibility of importing the entire 6 MT kept on tap, the senior CIL official said.

State gencos and IPPs have so far taken 4.66% of the total volume tendered out for imports.

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