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Spot buying of coal amid Rs. 50 b tender controversy
View(s):The Lanka Coal Company (LCC) has made a spot purchase of 165,000 tons of coal after a separate multibillion rupee tender ran into controversy in July. The consignment has been ordered to tide over the immediate requirement for coal at the Lakvijaya Coal Power Plant in Norochcholai, an LCC spokesman said. Open tenders were called for the spot purchases, resulting in a company called Liberty Commodities Ltd securing the contract.
A second spot purchase for 100,000 tons of coal is now being planned, the spokesman said. The Lakvijaya plant needs at least 2.2 million tons of coal a year. The shipments can only be unloaded at Norochcholai during the months that are not affected by monsoons.
The LCC first called for tenders in April this to buy 6,750,000 tons of coal for Lakvijaya on a three-year contract. The deal was worth around Rs. 50 billion. Seven bidders were shortlisted by a Technical Evaluation Committee (TEC) appointed by the Standing Cabinet Appointed Procurement Committee (SCAPC). One was disqualified.
The TEC made its choice after examining tenders but a dispute broke out over its choice of supplier. Four of the shortlisted bidders then went to the Procurement Appeal Board (PAB) to challenge the selection. The PAB is based at the Presidential Secretariat. The LCC spokesman said its decision was still not known. This delay caused the company to go for spot purchases as there was an urgent requirement for coal at Lakvijaya.