GMDC joins fingers with GUVNL to deal with energy safety of Gujarat – Business Information

Amid continuously increasing power demand in Gujarat, Gujarat Mineral Development Corporation (GMDC), one of the leading mining players, and Gujarat Urja Vikas Nigam Limited (GUVNL), state electricity regulation board, have inked an MOU to address the long-term energy security of the State. 

The power demand in Gujarat has been growing at a compound annual growth rate (CAGR) of more than 6 % since the last 5 years. As per the 20th EPS Report by the Central Energy Authority, the power demand is estimated to reach ~36,000 MW by FY 2031-32 against the peak demand of 24,544 MW in FY 2023-24. 

The framework between the two entities acknowledges the need to replace the fleet of old generating units, besides adding new capacities. As per the agreement, GUVNL and GMDC will work together for the Development of the Coal based & Lignite based power stations for Energy Security for Vibrant Gujarat through sustainable coal & lignite utilization.

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The current initiative is aligned to meet the residual surge in power demand for load balancing and meeting the late evening peak requirement. GMDC has been taking steps to develop the lignite mines in Gujarat allocated by the Centre. It is in the process of operationalizing its lignite mines in Gujarat which can support 1250 MW of additional lignite-based capacity. 

Furthermore, the Centre has allocated GMDC with two large commercial mines with a cumulative mineable coal reserve of 660 Million Metric Tonnes (Geological reserve – 1700 Million Metric Tonnes) at Baitarani-West (Angul District) and Burapahar (Sundargarh District) in the State of Odisha. These two mines together can support a thermal capacity of ~4400 MW. This will ensure that consumers in the State will continue to get 24*7 uninterrupted power supply in a more reliable and competitive manner, said the company in a statement.

Commenting on the development, Kanubhai Desai,  state Minister of Finance, Energy & Petrochemical,  said, “Energy security is at the core of our efforts and this landmark agreement between GUVNL and GMDC shows our commitment to providing reliable and sustainable power for all, ensuring that our State continues to thrive and grow.”