Coal news and updates

Mahagenco places order for 2.99 mt of imported coal

October 23: The Maharashtra State Power Generation Company Ltd (Mahagenco) has placed orders with Adani Enterprises Ltd and Knowledge Infrastructure Systems Private Ltd (KISPL) to procure 2.992 million tons (mt) imported coal and has already started getting the supplies, industry sources said.

"Mahagenco has placed the order at about $67 per ton CIF with Adani and KISPL recently and a few vessels have already arrived and supplied to their plants," the sources said.

The unloading and transportation charges from the ports to the power plants would be in addition to CIF price, the sources added.

Five companies – MMTC Ltd, STC Ltd, MSTC Ltd, Adani Enterprises and KISPL – were in the fray in the tender floated by Mahagenco in April while Adani and KISPL had emerged as L1 and L2 bidders respectively after the price bids were opened on May 23.

On May 24, ICMW had reported that Adani had emerged the L1 to supply 1.85 mt coal to two plants of Mahagenco whereas KISPL had emerged L2. On same day, ICMW had reported that the difference in offers of the two suppliers was very small, and the company will place purchase order probably by June 10-15. Supplies were likely to commence in July.

Mahagenco was given a target to import 3.50 mt of coal in 2012-13, but it had ended the year with actual imports of 3.03 mt, according to information provided to ICMW by an official from CEA.

The company's import target for 2013-14 has been kept unchanged at 3.50 mt.