Friday, November 15, 2024

Questionable Indonesian co seeks backdoor entry for coal supplies

Coal India Limited (CIL) – trying hard to mitigate coal shortage – may face another challenge with an entry of a bidder with dubious record.

It is reliably learnt that one of the bidders, PT Bara Daya Energi of Indonesia has already been banned by Gujarat State Electricity Corporation Limited (GSECL) after failing to supply a million tonne of coal and mission other compliances.

Last month, the power ministry directed the state-owned CIL to import coal for state and private gencos in view of the inadequate production of domestic coal. 

Subsequently, CIL issued three tenders to procure close to 9 million tonnes of imported coal for next few months worth Rs 10,000 crore. 

In its submission, PT Bara Daya Energi has given a declaration that it has never been banned by any PSU, central or state government body in the country. 

However, the letter written by the state utility GSECL with reference to 47 documents and letters between PT Bara Daya Energi narrates a different story.

This reporter has a copy of the letter issued by GSECL. 

In early 2021, PTB had participated in a tender issued by GSECL for supplying coal to power the thermal plants run by Gujarat Government. 

Later it was found that PT Bara Daya Energi had used forged documents of coal shipment to seek qualification for the tender. 

In October, 2021, state utility GSECL was forced to terminate the contract and forfeited the security deposit of $1.32 lakh (approximately Rs.99 crores).

In a letter to PT Bara Daya Energi’s India Operation Head, chief engineer of GSECL wrote: “You have not submitted the details till date even after giving final notice, this indicates your deliberate negligence towards the work of supply of import of coal as per the order. Hence, it is informed by this letter that the contract awarded to you is hereby terminated.”

The letter further mentioned that the security deposit-cum-performance bank guarantee of “$ 1,31,62,249.90 is forfeited as per the terms and conditions of work order.” GSECL also banned PT Bara Daya Energi from participation in any of its tenders in future.

CIL has a hot one on its hands. 

Repeated calls to CIL to elicit a response went unanswered. 

(Shantanu Guha Ray is a Wharton-trained journalist and award-winning author. He lives in Delhi with his wife and two pets.  He won the 2018 Crossword award for his book, Target, which probed the NSEL payment crisis.)

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