Maharashtra reviewing four bids in large coal import tender

12 Apr 2022 CW Team

Maharashtra is currently reviewing four bids that were received for a tender to supply two million tonnes (mt) of imported coal. It is expected that the final details will be out in the next month.

The Maharashtra State Power Generation Corporation Limited (Mahagenco) said it received bids for the above-mentioned tender, the largest one in at least the last three years, from Chettinad Logistics, Mohit Minerals, Adani Enterprises, and Gandhar Oil Refinery.

India has informed utilities to establish imports to the highest levels in six years as a response to the increased demand for coal as power sources soar. Maharashtra is the most industrialised state in the country and also the biggest power consumer.

Mahagenco stands in the process of finalising the cost, reasonability, and financial viability of the bids they have received. It is expected that the authorities will finalise the tender by mid-April 2022.

The directive to boost imports is issued at a time when the global prices trade at steep premiums to an average 2021 level post the invasion of Russia on Ukraine. Increased imports by India might further increase the pressure on prices.

Expensive imports might further add to the financial targets of the debt-laden power distributors owned by the state government, which have overdue payments of almost $5 billion to power generators.

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Also read: Maha govt seeks centre's intervention for Chhattisgarh coal block nod

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