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Indian State Seeks Bids for 4.2 Million Tons of Imported Coal

Tamil Nadu Generation and Distribution Corp., which supplies electricity in the southern Indian state, called bids from suppliers for 4.2 million metric tons of steam coal imports.

The tender, valued at 22 billion rupees ($408 million), is for coal with a heat value of 5400 kilocalories to 6300 kilocalories per kilogram to be delivered at four ports in the state, according to the government’s website. Bids should reach the Chennai-based company’s office by March 20. Ash content is specified in the range of 2 percent to 8 percent, while moisture content should be between 7 percent and 23 percent.

Tamil Nadu Generation has four coal-fired power plants, with a combined generation capacity of 3,570 megawatts.

Indian power producers need to import coal because supplies at 410 million tons annually fall short of demand estimated at 512 million tons, I.A. Khan, adviser for energy at the country’s Planning Commission, said last week.

The thermal coal benchmark price in Indonesia, the biggest exporter to India, has declined 19 percent in the past year to $88.35 a ton for February.

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