With reference to the April 10 story “MahaGenco’s coal washing contract extension raises several questions”, the company has said that the tender condition allowed an extension of one year. It further noted that a transparent and fair bidding process was followed for the award of the contract.

“The bidders were asked to submit their prices for washing and transporting the coal and also to give a value for rejects they would be allowed to retain,” said MahaGenco public relations officer Mahesh Aphale. “This value of rejects was to be deducted from the washing and transportation charges and a net amount was to be paid to the washery operator. “

“Accordingly, six parties submitted bids for washing raw coal,” he added. “Gupta Coalfields and Washeries Ltd, Nagpur, was the lowest bidder which had also offered the highest discount for rejects to be retained by them.

“After opening the tender, some entrenched suppliers began offering various options with different rates to vitiate the tender process. The company board decided not to entertain post-tender opening offers and, instead, go ahead with the lowest bidder to preserve the sanctity of the tender process,” Aphale said.

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