• Emergency tender for 3 months awarded to Taranjot Resources of India
• Shipments from Trident still ongoing, rejected consignments notwithstanding

The emergency tender that was moved to procure coal stocks in response to quality concerns over the coal supplies procured under the previous term tender process has been officially awarded to Taranjot Resources of India following a Cabinet decision. Five shipments carrying a total of 300,000 MT of coal are expected to arrive in Sri Lanka shortly, according to a senior official at the Energy Ministry.

Speaking to The Sunday Morning, Energy Ministry Secretary Udayanga Hemapala said: “The emergency tender has now been officially awarded. Through this, we are expecting to receive five ships carrying a total of 300,000 MT of coal.”

He also noted that the previous term tender remained in operation, but said that several consignments had been rejected due to quality issues. “The previous tender is still continuing. However, the first, ninth, and 11th shipments were rejected due to the supply of substandard coal. We are expecting approximately 20 shipments under this tender,” Hemapala explained.

The emergency procurement process was initiated to ensure supply continuity, allowing for a temporary deviation from standard tender procedures over a three-month period. 

The move was driven not by a shortage of coal in the global market, but by quality concerns linked to previous deliveries, according to Deputy Minister of Energy Arkam Ilyas. “The core issue we faced was the receipt of substandard coal from the previous supplier, which directly necessitated the initiation of an emergency tender,” he explained.

Under the arrangement, the Government will procure approximately 300,000 MT of coal, equivalent to five shipments from Taranjot Resources, with the company furnishing the required performance bond, enabling the procurement process to proceed.

The development follows repeated shortcomings by the previous supplier, Trident Chemphar, which operated under a term tender but failed to consistently meet delivery schedules and quality standards.

The procurement is taking place amid heightened volatility in global energy markets. Ongoing geopolitical tensions in the Middle East have increased shipping risks, with insurance coverage in certain zones becoming more restrictive, contributing to fluctuations in freight costs and the final landed price of coal.

Responding to concerns over potential supply disruptions, Deputy Minister Ilyas said coal deliveries to the Norochcholai power plant were continuing without interruption. “This is not to say we are not facing challenges, as the Norochcholai plant experienced numerous breakdowns last year and we cannot entirely guarantee its mechanical reliability. However, coal supply remains continuous, with another shipment arriving as recently as Friday (27),” he said.

Ilyas added that the primary vulnerability in the system remained the plant’s mechanical reliability rather than fuel availability, with authorities focusing on maintaining operational stability.

The latest developments come amid ongoing concerns that substandard coal supplied by Trident Chemphar may be affecting both electricity generation and public health.

In response, the Cabinet of Ministers approved an emergency procurement of 300,000 MT of coal for the Lakvijaya Power Plant in Norochcholai, along with a temporary deviation from standard procurement procedures to secure supplies over a three-month period. The decision, initially approved on 26 January, provides for the procurement of 300,000 MT (±10%) of coal in five shipments for the Norochcholai coal-fired power plant.

Technical analysis by the Public Utilities Commission of Sri Lanka (PUCSL) has indicated that the plant now requires a higher coal feed rate to maintain output, resulting in increased flue gas volumes and a corresponding rise in pollutant formation.