Dubai-based C&O bags coal supply bid for Parli

Coal & Oil (C&O), a Dubai-based coal supplier, has been awarded the contract to supply imported coal for the upcoming power plant at Parli in the state.

The plant is expected to be synchronised in April 2006. The company, through its subsidiary Coastal Energy, has been awarded the contract to supply 600,000 tonne of bituminous coal following Maharashtra State Electricity Board's (MSEB) 640,000 tonne tender for delivery.

C&O has also offered multi-origin material for the Khaperkheda and the Parli plants in the state. This is the first time that MSEB has decided to use imported coal at Khaperkheda. Previously, imported coal has been used in the Nashik and Bhusawal plants.

But with all these plants depending on imports, MSEB's coal imports will be around two million tonne in the current fiscal, up from just under one million tonne in the previous fiscal. C&O won the 0.9 million tonne supply tender for the Nashik and Bhusawal plants in March.

C&O, which already owns a coal mine in Indonesia, is also exploring the possibility of getting into coal mining in the country in partnership with power companies to whom it supplies coal, including Reliance Energy, Tata Power and Calcutta Electric Supply Co (CESC) and Gujarat State Electricity Board.

Ahmad Buhari, president and CEO, of the company, "With the power companies getting into bidding for captive coal blocks, it makes a lot of sense for us to tie up with them for mining operations."

Currently, barely 10 per cent of demand for coal in the country is met through imports. However, both the central and state governments have begun promoting imported coal-based plants located along the coast. MSEB has also plans of setting up a 1,000 mw coastal power plant at Dhopave in two phases of 500 mw each.