Adani, MMTC in race to supply coal to GSECL

As many as five companies are in fray to supply 15 lakh metric tonnes of non-coking steam (thermal) imported coal to Gujarat State Electricity Corporation Ltd (GSECL) on high seas sale basis.

The five players, who have bid for supplying imported coal to the state PSU, include Adani Enterprise, a trading arm of the Adani Group, MMTC, State Trading Corporation (STC), Anand Group and Coastal Energy, a subsidiary of Dubai-based Coal and Oil Group.

All the companies have submitted technical and financial bids. "Currently, we are evaluating technical bids. The bidding process is likely to be completed within one month," said a senior company official.

The state-run power company had floated tender in September 2009 for procurement of 15 lakh metric tonnes of coal. The total size of the tender is Rs. 750 crore.

GSECL intends to procure 15 lakh metric tonnes of imported coal for one year, which will be used for its Gandhinagar, Wanakbori and Sikka thermal power stations. The successful bidders will have to supply 1.25 lakh metric tonnes per month.

As per the eligibility criteria set by GSECL, a single bidder must have supplied annual average quantity of 10 lakh tonnes of imported steam (thermal) coal to power utilities in India in last three financial years (i.e. 30 lakh tonnes in 2006-07, 2007-08 and 2008-09). The supply could be directly or through PSUs. In case of joint venture or consortium, at least on member of the JV/consortium must have supplied the said quantity.