The 233 million tonne (MT) coal production contract at Central Coalfields Limited’s (CCL) Amrapali project has taken a new turn with the withdrawal of the first bidder (L1) after failing to submit the required bank guarantee. CCL has now invited Hyderabad-based Nagarjuna Construction Company (NCC), which emerged as the second-lowest (L2) bidder, to take up the work.
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NCC Under Pressure to Submit Rs. 400 Crore Bank Guarantee
According to CCL sources, NCC had quoted nearly 20% lower than the estimated price during bidding and will now have to deposit a bank guarantee of about Rs. 400 Crores before securing the contract. The company’s decision will determine whether the project moves forward or faces another round of delays.
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Contingency Plan If NCC Withdraws
CCL officials said that if NCC refuses or fails to meet the financial requirement, the work will be offered to the third bidder, Ambey Joint Venture. If Ambey JV too backs out or does not meet the conditions, CCL will be forced to float a fresh tender for the project.
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This is the second instance of a bidder withdrawing from the Amrapali coal project due to bank guarantee issues. The recurring withdrawals have raised concerns about bidder preparedness and financial capacity in large-scale coal contracts. CCL’s management is keeping a close watch on NCC’s next move as timely commencement of production is very important to meet annual coal supply targets.
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