The discom’s board gave its nod for this as Tangedco ended up paying $135 per tonne for 7.3 lakh tonnes imported since February as the bid was fixed at the prevailing rate, though coal price fell to $70 in May and June.
A Tangedco official said international price indexes such as Argus and Platts will be taken for reference to decide the price while loading coal on a ship at the origin point. Tangedco is the latest to join the list of those using this pricing that includes NTPL, NTPC and many states. “If the coal price in the index is less during the second or third shipment compared to the first, the difference in price will be calculated and the supplier paid the discounted price. If the price goes up, we will have to buy the coal at a premium.” This will not give space for allegations of buying coal at inflated price, he added.
Tangedco says the requirement for imports increased as the Union government mandated blending of 6% of imported coal with domestic coal for thermal plants. “We also need more imported coal for Stage III of North Chennai Thermal Power Station.”
Tangedco after opening bids will go for reverse auction as it always does to further reduce quoted pricing by disclosing the lowest bid and finalise the tender. Officials hope they would get bids from more countries instead of just Indonesia as they have made changes in the clauses regarding moisture and fly ash content of imported coal.
