Coal India issues LoIs to 15 firms for procuring explosive

NEW DELHI: State-run Coal India Ltd (CIL) on Friday informed the Supreme Court that it has issued Letter of Intents (LoIs) to 15 companies for procuring explosives for mining activities.

CIL Counsels Ranjit Kumar and Ajit Kumar Sinha submitted that the LoIs were issued to firms found eligible to participate in the reverse auction for procurement of explosives.

A bench headed by Justice B N Agarwal on July 25 allowed the public sector firm to go ahead with the tender process, while staying a Calcutta High Court order which restrained it and its seven subsidiaries from doing so. The next date of hearing is on August 10.

The High Court had passed the order on a plea by Andhra Pradesh-based Premier Explosives seeking a direction to CIL to permit it to participate in the bidding process.

According to CIL, Premier Explosives wanted to stall the tender process as it was disqualified from the techno- commercial bid.

The PSU had invited tenders for procurement of explosives for 2007-08 and had appointed state-owned Metal Scrap Trading Corporation for conducting e-auction. PTI