TNEB to import coal through State Trading Corporation also

T. Ramakrishnan

MMTC has not been able to come to the rescue

Government relaxes import norms
Reorganisation process

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CHENNAI: Hit by problems of coal availability, the Tamil Nadu Electricity Board (TNEB) has initiated steps to import five lakh tonnes of coal through the State Trading Corporation (STC).

This follows the State government’s decision to relax the conditions of the Transparency in Tenders Act to enable the power utility to order coal import through agencies other than MMTC (earlier known as Minerals and Metals Trading Corporation).

A government notification of August 28 stated that the Board could import coal through Central Public Sector Undertakings “which have been in the business of importing coal and supplying to the government-owned power utilities” at the price negotiated with the CPSUs concerned. Also, the Board could import coal through Tamil Nadu Newsprint and Papers Limited. This new arrangement would be in place without prejudice to the TNEB’s right to procure imported coal through competitive bidding.

At present, the Board maintains a stock for four to six days against the Centre’s norm of one month, according to a senior TNEB official. Nearly a third of the Board’s annual requirement of 15 million tonnes is met through imports. For the last four years, the TNEB has been importing coal through the MMTC. In view of a vigilance case, the Central organisation has not been able to come to the immediate rescue of the Board, even though an order for five lakh tonnes was placed with MMTC in July. It was under these circumstances that the Board approached the State government for relaxation of the stipulation that coal be imported only through MMTC.

After completing the formalities, the Board’s formal order may be placed with the STC in a couple of weeks, the official explains, adding that there has been no problem with regard to the arrival of domestic coal.

In the meantime, as part of long-term measures to overcome the problem of inadequate availability, the TNEB has tied up with the Maharashtra State Mining Corporation and formed a special purpose vehicle, Maha Tamil Collieries Limited. Last week, the Assistant Registrar of Companies, Mumbai, notified the incorporation of the SPV.

Reorganisation process

On the status of the Board’s re-organisation, the official says the TNEB has arranged exposure trips for representatives of all recognised unions to Maharashtra, Andhra Pradesh, Karnataka and West Bengal, where State Electricity Boards have been restructured. The representatives have been divided into four teams; each team visits one State. About a week ago, one team went to Bangalore. The others will go to their destination-States soon.