Coal India, the world’s largest coal mining company, will float a short- and medium-term tender for import of coal next week. ReutersQuoting senior officials of the company.
Short term tender will demand delivery of imported Coal between July and December, while the medium term tender will seek supply between July 2022 and June 2023.
According to the official, the tenders will be placed on a business-to-business (B2B) basis, as government-to-government (G2G) imports – suggested by the power ministry last week – will delay the process.
The central government last week asked miners to place orders for shipments from abroad. The deadline for states to submit their requirements to the power ministry was extended from May 31 to June 3.
The utilities had suggested that multiple tenders would lead to confusion and sought centralized procurement through Coal India.
This will be the first time since 2015 that Coal India has imported the fuel.
India has withdrawn its policy to cut thermal coal imports and plans to reopen closed mines to meet rising electricity demand.
Despite record production by Coal India during the year ended March 2022, India faced its worst power crisis in six years in April due to high power demand.
Coal produces about 75% of India’s electricity generation and Coal India produces 80% of domestic coal.
Coal India has earlier blamed lower output from import-based coal plants, saying lower imports put more pressure on domestic mining.
Fear of another power crisis
The Center for Research on Energy and Clean Air (CREA) in its latest report has said that India may face another power crisis in July-August due to low pre-monsoon coal stocks in thermal power plants.
The independent research agency said in a report, “Data compiled from official sources suggest that coal power plants are not in a position to address even a modest increase in power demand and coal transportation needs to be planned in advance.” ” Titled ‘Failure to load: India’s power crisis is a coal management crisis’.
It said the onset of southwest monsoon would further hamper the mining and transportation of coal from mines to power stations.
“If coal reserves are not replenished to sufficient levels before monsoon, the country may head towards another power crisis in July-August 2022,” CREA said.