India MMTC reissues 12.5 mln/T coal import tender

Kalimantan Coal
* MMTC reissues tender to supply India’s top power producer
* Tender includes new conditions to boost competition (Adds tender details)
NEW DELHI, Aug 31 (Reuters) -India’s MMTC (MMTC.BO) has reissued a tender to import 12.5 million tonnes of thermal coal with new conditions aimed at enhancing competition, a tender document posted on the company’s website showed.
The tender, for coal supplies to various plants of the country’s biggest power producer NTPC Ltd (NTPC.BO) in the current fiscal year ending March, will close on Sept. 16.
MMTC had issued a tender in May to import 12.5 million tonnes of coal but it was not awarded after Knowledge Infrastructure Systems complained that some tender terms meant only trader Adani would qualify [ID:nLE494747].
Coal-fired plants account for two-thirds of power generation in India and any delays to coal procurement will exacerbate India’s shortage of fuel for power generation.
According to the latest document, contract volumes would be split among three bidders in 50:30:20 ratio compared to 60:40 earlier.
The second and the third-lowest bidders will be awarded the contract if they match the lowest rates, otherwise the tender would be reissued for the remaining quantities. Bids submitted need to be for at least 6.25 million tonnes.
The new tender rules allow bids by any firm that had supplied 2 million tonnes of coal per year in the last three years to companies from specified industries like steel, power and cement.
Also, a deposit requirement had been fixed at 4 percent of the contract value compared to differential rates earlier, as reported by Reuters last week. (Reporting by Nidhi Verma; Editing by Valerie Lee)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s