Adani Enterprises: Andhra Pradesh has canceled the bids submitted by Adani Enterprises for supply of imported coal in two separate tenders. The state government told Reuters that Adani had cited very high prices.
This is the first time in recent years that a major government tender for imported coal has been canceled due to high prices. The details of this cannot be found yet.
India’s emphasis on import of coal
India has asked companies to increase coal imports to address the shortage of coal in the domestic market. However, costly imports could add to the economic woes of state-owned, debt-ridden power distributors, who owe around $15 billion to power producers.
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Adani had bid so much
Adani, India’s biggest coal trader, sold 5,00,000 tonnes of South African coal last month at Rs 40,000 ($526.50) per tonne and 750,000 tonnes in January at Rs 17,480 ($230.08), officials said. Another consignment was offered for supply.
Prices have risen sharply since January
Benchmark South African coal prices soared to a high of $176.50 a tonne in January due to export restrictions by Indonesia, from a level of $441.65 a tonne in March due to the Russia-Ukraine war. Had arrived.
Officials said, both the tenders were canceled because the prices were too high. He said Adani was the lone bidder in the 5,000 tonne tender, while Agarwal Coal had also bid for 7,50,000 tonne which had bid higher than Adani.
Adani and Agarwal did not respond to emails sent in this regard.
Power crisis was born in October and March
India faced its worst power shortage in recent years during October and March amid rising demand for electricity. However, this happened despite record production by Coal India, which had a monopoly on coal production in India.
One of the above officers is Andhra Pradesh Power Generation Corp Ltd. B Sridhar, MD, said the power crisis is not as much as it was in October, but the state is in a similar demand-supply position. We haven’t stockpiled, Sridhar told Reuters. Although coal is available locally due to more mining, the problem of transportation remains.
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