TANGEDCO cancels controversial Rs 1.3k cr coal import tender

22 Apr 2021 Editorial Team

In February, the Madras High Court had restrained TANGEDCO from opening the tender and price bids received for a Rs 1,330 crore worth tender for supply of 20 lakh tonne of imported steam coal of any origin to be delivered at the Kamarajar port at Ennore between May 2021 and May 2022.

According to a media source, the decision to cancel the tender was taken more than a month after opening the technical bids on March 10 from seven bidders, including Chettinad Logistics Private Ltd. Construction World has not been able to independently verify the news, however.

Ind-Vigo Coal Private Ltd, a Thoothukudi-based company, had first moved the Madras High Court alleging irregularities in the bidding process. The company had noted that as against the norm of providing 30 days notification for tenders above Rs 2 crore value, the TANGEDCO's tender notification validity was only 15 days for a global tender whose value is about Rs 1,330 crore.

Arappor Iyakkam, an anti-corruption NGO, had written to the utility seeking cancellation of the tender alleging that the new conditions were introduced into the coal tender that eliminates all Indian bidders and favours only foreign players. On March 12, the Madras High Court had warned TANGEDCO that it would quash the coal tender if any evidence of foul play was found.

The court was hearing public interest litigation filed by C Selvaraj, a retired assistant engineer of the TANGEDCO who sought a joint probe by the Directorate of Revenue Intelligence (DRI), Central Vigilance and the Directorate of Vigilance and Anti-Corruption (DVAC) into the alleged scam in the import of coal for thermal power generation.

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Also read: India clears way for major reforms in metals & minerals sector

After the Madras High Court’s intervention in February, Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) has reportedly cancelled the Rs 1,330 crore controversial coal import tender. The tender had been under the court's scrutiny for a while. In February, the Madras High Court had restrained TANGEDCO from opening the tender and price bids received for a Rs 1,330 crore worth tender for supply of 20 lakh tonne of imported steam coal of any origin to be delivered at the Kamarajar port at Ennore between May 2021 and May 2022. According to a media source, the decision to cancel the tender was taken more than a month after opening the technical bids on March 10 from seven bidders, including Chettinad Logistics Private Ltd. Construction World has not been able to independently verify the news, however. Ind-Vigo Coal Private Ltd, a Thoothukudi-based company, had first moved the Madras High Court alleging irregularities in the bidding process. The company had noted that as against the norm of providing 30 days notification for tenders above Rs 2 crore value, the TANGEDCO's tender notification validity was only 15 days for a global tender whose value is about Rs 1,330 crore. Arappor Iyakkam, an anti-corruption NGO, had written to the utility seeking cancellation of the tender alleging that the new conditions were introduced into the coal tender that eliminates all Indian bidders and favours only foreign players. On March 12, the Madras High Court had warned TANGEDCO that it would quash the coal tender if any evidence of foul play was found. The court was hearing public interest litigation filed by C Selvaraj, a retired assistant engineer of the TANGEDCO who sought a joint probe by the Directorate of Revenue Intelligence (DRI), Central Vigilance and the Directorate of Vigilance and Anti-Corruption (DVAC) into the alleged scam in the import of coal for thermal power generation. Image Source Also read: India clears way for major reforms in metals & minerals sector

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