Coal news and updates

NTPC invites EoI to procure 12 mt imported coal on long-term basis

November 25: Five days after ICMW reported, NTPC Limited, Asia's largest power generation company, on November 25, invited expression of interest (EoI) globally for entering into a coal supply agreement for procuring of up to 12 million tons (mt) of imported steam coal on a long-term basis of 10-15 years.

As per the EoI, the first consignment under long-term contracts would be required in 2018.

"This means, NTPC will continue to procure imported coal on short tender or annual tender basis till 2017-18," industry sources said.

Through this EoI, NTPC intends to identity the Miner Owner (s) or lease holder or off-takers or coal suppliers having experience in executing works of similar nature in line with the specified scope of works.

The company will issue separate RFP for selection of suppliers/mine owners/lease holders/off-takers with whom the coal supply agreements shall be entered into.

The interested parties may submit their EoI along with relevant details through e-mail on or before December 20, 2013 followed immediately by three hard copies (1 original + 2 photocopies to be furnished by December 25, 2013).

On November 20, ICMW had reported that NTPC is contemplating entering into long-term contracts with suppliers to procure imported coal.

"The company may be looking at entering into contract to procure 10-12 million tons (mt) of imported coal annually for the next five years starting 2014-15," ICMW had reported, quoting sources.

The EoI of NTPC comes nearly two months after Gujarat State Electricity Corporation Ltd (GSECL), another leading utility, floated a tender to procure 2.5 mt of imported coal per year on a long-term basis (for five years).

GSECL, in September, had floated a tender inviting offers for long-term supply of 2.5 mtpa imported steam coal in bulk.