GSECL plans to procure 15 lakh MT of imported coal

State-run power generation company, Gujarat State Electricity Corporation Ltd (GSECL) intends to procure 15 lakh metric tonnes of non-coking steam (thermal) imported coal. The company has invited bids from coal suppliers for supply of coal on high seas sale basis.

The company is planning 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. The size of the tender is Rs. 750 crore. GSECL floated the tender on 17 September and the last date for submission of online and physical tender is October 3.

As per the eligibility criteria set by the company, 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.

However, this criteria might irk some willing to participate in tendering process. At least, one company, which is one of the leading coal suppliers in India with coal supplies of 1 crore tonnes last year, has dashed off a letter to Gujarat government seeking its intervention in the matter on the ground that the criteria of 30 lakh tonnes of coal supply to power utilities only will restrict competition as only two or three players can meet this criteria.

Referring to a tender recently floated by MMTC Ltd to procure 1.25 crore metric tonnes of imported coal for NTPC, the company official said that MMTC had allowed participation by those companies which had handled coal supply of 20 lakh metric tonnes in any one financial year during last three fiscals, whereas GSECL's tender for 15 lakh metric tonnes requires experience of supplying 30 lakh metric tonnes in last three fiscals. The GSECL criteria also says that the bidder must have supplied this quantity to only power utilities.

"MMTC had allowed participation by the companies who had supplied specified quantity to various sectors such as power, cement, steel, fertiliser and industrial utilities. As a result, MMTC's tender saw five bidders", the official added. The company also complained about short period for submitting bids.

The company has also tried to bring this to the notice of other authorities such as Gujarat Electricity Regulatory Commission, chairman and managing director of GSECL, the principal secretary, department of energy, vigilance commissioner, Gandhinagar.