CIL invites fresh applications for coal imports

State-owned Coal India Limited  (CIL) has once again invited fresh applications from interested entities with regard to import of coal that would be supplied to power plants under fuel supply agreements. The world’s largest coal miner had to invite fresh applications as the earlier tender floated by the PSU elicited no response. The company invites tender ‘for selection of agency from government department or government-owned company or public sector entity for supply of imported coal to purchaser (power producers),’ CIL said. CIL chairman and managing director S Narsing Rao had said earlier this month that the company would ‘float a fresh tender anytime...There was no response to the the tender floated earlier as the potential people (the PSUs like STC, MMTC) because of some apprehensions expressed by them’. Rao had said the company intends to import five million tonnes (MT) of coal to meet the shortfall against deliveries under fuel supply agreements (FSAs). CIL had for the first time invited applications in November, 2013. CIL had said earlier said that it is likely to import 15 MT of coal for power utilities as part of meeting the FSA commitment. According to the new FSA, CIL will supply 65 per cent of the contracted amount from domestic sources and another 15 per cent through imports with pass-on pricing model.