New projects push Karnataka Power to secure 10-year coal supply

Karnataka Power Corp is seeking to buy 5 million metric tons of imported power plant coal annually for 10 years in its biggest ever coal tender.

Karnataka Power operates hydroelectric, thermal and wind energy plants with a total installed capacity of 5,991 megawatts and plans to add 5,200 megawatts of coal-fired capacity.

The contract may be awarded in 12 to 14 months and is for deliveries starting in the year ending March 2015, G.A. Purushotham.

Initial offers must be submitted by Jan. 18 after which the company will shortlist suppliers and then seek final offers in the second part of the tender after a few months, he said.

Karnataka is seeking coal with 5,800 to 6,300 kilocalories a kilogram with total moisture and ash content as much as 20 per cent and 14 per cent respectively, and sulphur content of less than 0.8 per cent.