Coal

NTPC order for imported coal is for small quantity: Adani Group

Billionaire Gautam Adaniโ€™s port-to-energy conglomerate said it had won a contract to supply imported coal to state-owned electricity generator NTPC but played down its significance saying the volume of 1 million tonnes was small. โ€œNTPC has awarded the contract to the company for the supply of 1 million tonnes of imported coal to its various power plants,โ€ Adani Enterprises said in a stock exchange filing.


The contract, it said, was awarded by NTPC through โ€œan elaborate bidding process (that) started in the end of October 2021, followed by reverse bidding and negotiations.โ€


As the news of NTPC sourcing coal from Adani got traction on social media, the group clarified that โ€œthe quantum of this order is a small quantity in overall import coal business of the company.โ€


โ€œTo put things in perspective, it may be noted that till 2015-16 NTPC was procuring imported coal in excess of 10 million tonnes and total imports of coal in the state-owned power sector in 2015-16 was around 45 million tonnes,โ€ the company said.


NTPC had also floated a tender on behalf of Kolkata-based Damodar Valley Corporation Ltd (DVC), also state-owned, for procurement of 1 million tonnes imported coal for plants of DVC.


โ€œThe company has submitted its offer against this tender also. However, the company has no information or communication either from DVC or from NTPC on this tender,โ€ Adani Enterprises Ltd (AEL) said.


Responding to a stock market notice, it said โ€œthere is nothing so significant/ material in an award of a small contract which merits announcement to the stock exchanges.โ€


โ€œIt is part of routine business activity,โ€ it said. โ€œIncidentally, 1.00 million tonnes quantity is merely 2% of the likely volume of import coal trade business of AEL in 2021-22.โ€

Did you like this article?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this article.

Back to top button