By Sudarshan Varadhan
NEW DELHI (Reuters) – India’s southern Andhra Pradesh has cancelled bids made for two separate tenders by India’s Adani Enterprises to supply imported coal as the prices quoted were too high, two state government officials told Reuters.
It is the first time in recent years that a major government tender for imported coal has been cancelled over high prices. Details on the cancellation have not been previously reported.
Adani, India’s largest coal trader, offered to supply last month 500,000 tonnes of South African coal at 40,000 rupees ($526.50) per tonne and another 750,000 tonnes at 17,480 rupees ($230.08) in January, the officials said.
Both tenders were cancelled because the prices quoted were too high, the officials said. Adani was the only bidder for the 500,000 tonnes tender, while Indian trader Agarwal Coal, which had also bid for the 750,000 tonnes tender, had quoted a higher price than Adani, they said.
Adani and Agarwal Coal did not immediately respond to emails and calls seeking comment on Sunday.
(Reporting by Sudarshan Varadhan; Ediitng by Emelia Sithole-Matarise)