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.
India has asked utilities to step up coal imports to address a domestic shortfall. However, expensive imports could add to the financial woes of state government-owned, debt-laden power distributors, which have overdue payments of nearly $15 billion to power generators.
