India's largest coal producer Coal India Limited is expected to decide whether to award a contract for thermal coal imports at its next board meeting set for late May, a source said Thursday.

CIL received a single bid from government trading firm MMTC in response to a tender it issued earlier this year to import 5 million mt of thermal coal.

If the board approves the deal, CIL will sign an import agreement with MMTC and specify the quality and quantity of the coal to be imported along with the delivery schedule, the source said.

CIL invited bids from government trading firms seeking 5 million mt of thermal coal imports of any origin on its behalf and supply to various power plants until September 2015. The tender was reissued after it drew no responses in November.

The tender asked for bidders interested in importing, handling and transporting the coal to power plants.

CIL, which produces more than 80% of India's coal output, is facing a shortfall under fuel supply agreements signed with power plants.

The agreements require CIL to meet 80% of the plants' coal needs, with 65% of the contracted amount from domestic sources and another 15% through imports.

It aims to import two types of coal. For the first type, it sought coal of 5,800-6,500 kcal/kg ADB, having 10-20% total moisture as received, 8-20% ash air dried and 0.7-0.9% sulfur air dried.

Specifications for the second type include 5,300-5,800 kcal/kg ADB with up to 32% moisture as received, up to 20% ash air dried and sulfur up to 1% air dried.