Russian company steps forward to supply coal

By Chaminda Silva

A Russian company has come forth to provide coal for Norochcholai Coal Power Plant (NCPP) for two years.Lanka Coal Company (LCC), Chairman and Managing Director Jagath Perera said that out of the two companies that had responded to a tender to supply coal, the Russian company was very likely to get the bid. The other company too could appeal till 19 August, he said.

Perera said that there were enough coal stocks until the end of October. “We had coal till 30 September. However since we had to shut down one plant for mandatory maintenance and another plant broke down recently for two weeks, therefore, the stocks can last till end of October,” he said.The LCC Chairman said they had requested a credit period of five months. However, the Russian company had agreed to give a credit period of six months, he said.

“We will probably start importing coal from October and the price will be determined by a pricing formula,” he said.

LCC recently floated a tender to supply 4.5 million metric tons of coal to the Lakvijaya Power Plant for three years. The bids were closed on 10 August, Perera said.

The power plant needs about 2.36 million metric tons of coal a year. Coal can only be unloaded between September and May each year during the break from monsoons.Perera said that the previous supplier still had to supply 1,140,000 metric tons of coal and that they also had secured 120,000 metric tons through a spot tender. The Russian company will provide the remainder of the coal for 2022-23 and for another year.