Coal news and updates

Elections may delay floating of imported coal tenders by PSU cos

March 7: Leading traders of imported coal in India believe that some of the public sector power generation companies may delay floating tenders for procuring imported steam coal due to the general elections in the country.

"Since the model code of conduct will be in operation after the announcement of the election dates on March 5, some PSU power generators may defer their tender floatation for imported coal," an official with a leading coal trader and supplier said.

"Even though there is no embargo on floating such tenders, it has been found in the past that many public sector power generators had delayed their tender floatation and it might happen this time too," the official added.

Other officials said public sector power generators, particularly in politically sensitive states, avoid being involved in any controversy just before the election as they do not know which party will come to power and how they would deal with a particular subject.

Meanwhile, NTECL, a joint venture of NTPC Ltd and Tamil Nadu Generation & Distribution Corporation Limited (TANGEDCO), which floated a global tender to procure 1.0 million tons of imported steam coal, has convened a pre-bid meeting with suppliers on March 17 and the tender is scheduled to be opened on March 25.

"The plant is located in Tamil Nadu and, considering the political implications, the company may delay finalisation of the tender," they said.