CIL’s tender for coal import elicits single bid from MMTC

CIL’s tender for coal import elicits single bid from MMTCState-run miner Coal India Ltd's (CIL's) tender for coal import contract, which was floated at the start of this year, has received a single bid from MMTC.

Requesting anonymity, an official from the miner said the single bid received from MMTC for importing coal from foreign markets to meet supply agreements with power plants was under evaluation.

However, the official declined to comment on the proposed quantity of coal imports for the current financial year. The miner aims to finalise the bid by next month.

Speaking on the topic, the official said, "We are still in the process of evaluation of the expression of interest . will try to finalise it by next month. It is too early to say until we get consent from the consumers."

CIL had first invited bids for import of the fuel in November last year, but tender failed to elicit any response. At that time, CIL Chairman & Managing Director S. Narsing Rao had admitted that the tender elicited no response because potential bidders like STC and MMTC had some apprehensions and that the miner would float a fresh tender in the near future.

Under the terms & conditions of new fuel supply agreement (FSA), CIL will supply 65 per cent of the contracted amount of coal from domestic sources and another 15 per cent through imports. In the last financial year, the company didn't import coal as domestic sources were enough to meet consumers' demand.

At 09:58 hrs on April 7, CIL stock traded at Rs 283.05 per share, up 0.37 per cent from its previous close.