Coal news and updates

NTPC places order for mere 2.54 mt of imported coal

November 19: After a delay of nearly two months, NTPC has finally placed orders with two suppliers to procure only around 2.54 million tons (mt) of imported steam coal while scrapping the tender for the balance quantity of 2.46 mt.

The company, in July, had floated tenders to procure 5.0 mt imported steam coal for its 16 power plants, but the tender was scrapped due to low response. It re-floated the tender in August, but this time also only two companies had responded as the terms and conditions were slightly stiff.

It was briefly speculated that NTPC would scrap its August tender as well.

However, ICMW had reported on October 23 that NTPC was evaluating the offers received from two suppliers – Adani Enterpries and Coal & Oil – and is likely to place the orders at about $87 per ton CFR even though offers had come at around $88-89 per ton CFR.

According to the latest information available with ICMW, the power generator has finally placed order to procure 1.34 mt of coal through Adani Enterprises and about 1.20 mt through Coal & Oil at about $86 per ton CFR. The agreements against this 2.40 mt supply are likely to be signed within the week ending November 22.

“The orders have been placed only against supplies through eastern coast ports, while the balance quantity of 2.46 mt, which was to be delivered through the western coast ports, has been scrapped,” a source familiar with the development told ICMW.