VISAKHAPATNAM: The Telangana government is likely to submit its bid in response to EoI invited by Rashtriya Ispat Nigam Limited (RINL), on Saturday, the deadline for submission of the same. It may be noted that RINL had invited bids to provide working capital, raw materials and purchase products of the Visakhapatnam Steel Plant on March 27.
A five-member team of Singareni Collieries Company Limited (SCCL) wrapped up its visit to the VSP to study its viability on Thursday. Sources informed TNIE that the SCCL may make an offer that would not be feasible for the steel plant. It has been reported that SCCL has quoted Rs 6,000 a tonne for its coal, whereas one-tonne coal at Mahanadi Coalfields is priced between Rs 2,300 and Rs 2,500. Besides, Telangana’s mining corporation is also likely to add capital interest of 12% and seek 20% discount on finished steel.
The sources informed us that a preliminary discussion would be held before the EoIs are shortlisted. The bids could be awarded to multiple parties with regard to coal supply and working capital.
Asked whether Telangana government could participate in the bidding process, sources said there is no bar for submitting EoIs to provide working capital and purchase products. They said the Telangana government will move the Supreme Court, if its bids are rejected. Meanwhile, it has been reported that around 10 companies have expressed interest in RINL’s invite. The bids will open after 3 pm on Saturday.