NEW DELHI, April 3 (Reuters) – India’s southern Andhra Pradesh has cancelled bids made for 2 separate tenders by India’s Adani Enterprises (ADEL.NS) to produce imported coal as the costs quoted had been too excessive, two state authorities officers advised Reuters.
It’s the first time in recent times {that a} main authorities tender for imported coal has been cancelled over excessive costs. Particulars on the cancellation haven’t been beforehand reported.
India has requested utilities to step up coal imports to deal with a home shortfall. Nonetheless, costly imports might add to the monetary woes of state government-owned, debt-laden energy distributors, which have overdue funds of almost $15 billion to energy turbines.
Adani, India’s largest coal dealer, provided to produce final month 500,000 tonnes of South African coal at 40,000 rupees ($526.50) per tonne and one other 750,000 tonnes at 17,480 rupees ($230.08) in January, the officers mentioned.
Benchmark South African coal costs began rising in January to hit a month-to-month excessive of $176.50 per tonne within the wake of an export ban by Indonesia, extending the rise to a report $441.65 per tonne in March as a result of Russia-Ukraine conflict.
Each tenders had been cancelled as a result of the costs quoted had been too excessive, the officers mentioned. Adani was the one bidder for the five hundred,000 tonnes tender, whereas Agarwal Coal, which had additionally bid for the 750,000 tonnes tender, had quoted a better value than Adani, they mentioned.
Adani and Agarwal Coal didn’t instantly reply to emails and calls looking for touch upon Sunday.
India has reduce provides to the non-power sector because it confronted two of its worst energy shortages in recent times in October and March, regardless of report manufacturing by state-run near-monopoly Coal India Ltd (COAL.NS).
One of many officers, B Sreedhar, managing director at Andhra Pradesh Energy Technology Corp Ltd, mentioned the present energy scarcity was not as dangerous because the one in October, however mentioned the state was residing a “hand-to-mouth existence”.
“We’ve not been in a position to construct up shares. Though coal is on the market domestically due to extra mining, transportation is a matter,” Sreedhar advised Reuters.
Andhra Pradesh, which confronted an electrical energy deficit of seven% over the last three days of March, floated a young this week “for pressing procurement” of 100,000 tonnes of imported coal, the officers mentioned.
Indian state government-owned utilities might import not less than 2.6 million tonnes within the coming months to deal with summer season energy demand, equalling complete shopping for within the final 24 months, different state authorities officers mentioned.
The western Maharashtra state has floated a young to acquire 2 million tonnes of coal, whereas southern Tamil Nadu state might float tenders to acquire 480,000 tonnes, senior officers there mentioned.
Federal government-run NTPC Ltd (NTPC.NS) floated a young final month to import 1.25 million tonnes of coal.
($1 = 75.9731 Indian rupees)
Reporting by Sudarshan Varadhan; Ediitng by Emelia Sithole-Matarise
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