Coal news and updates

GMDC, GUVNL ink deal to develop coal, lignite power stations in Gujarat

In order to address the long-term energy security of Gujarat by replacing the fleet of old generating units and further adding new capacities, Gujarat Urja Vikas Nigam Limited (GUVNL) and Gujarat Mineral Development Corporation (GMDC) has entered into a strategic partnership to bolster energy security through sustainable coal & lignite utilization, according to a company release.

GUVNL and GMDC have collaborated for development of coal and lignite based power stations in the state. Gujarat has been witnessing a huge surge in the power demand which has been growing at a compound annual growth rate (CAGR) of more than 6 percent since last five years. From 24,544 MW of peak demand duirng 2023-24, the demand is estimated to reach around 36,000 MW by 2031-32 (as per 20th EPS Report, CEA).

“The signing of this MOU marks a historic milestone as we embark on a journey to secure the energy future of Vibrant Gujarat. This landmark agreement between GUVNL and GMDC is a testament to our shared dedication to energy excellence. Through the collective wisdom and strategic partnership, we are committed to providing reliable and sustainable power for all, ensuring that our State continues to thrive and grow. A self-reliant and Vibrant Gujarat will also be a force multiplier for the country’s economy. Energy security is at the core of our efforts, ensuring positive results and significant investments through the mining and electricity value chain," said Kanubhai Desai, Minister of Finance, Energy & Petrochemical, Government of Gujarat.

The utilities are conscious about the need to reduce carbon footprints and are committed for taking robust measures to develop Renewable Energy projects.

The current initiative is aligned to meet the residual surge in power demand for load balancing and meeting the late evening peak requirement. Working in this direction, GMDC has been taking steps to develop the lignite mines in Gujarat allocated by the Government of India. Taking similar initiative further, Government of India has allocated two large commercial mines at Baitarani-West (Angul District) and Burapahar (Sundargarh District) in Odisha. With a cumulative mineable coal reserve of 660 million tons (mt) (geological reserve – 1,700 mt), both the mines together can support a thermal capacity of around 4,400 megawatts (MW).

GMDC is also in the process of operationalizing its lignite mines in Gujarat which can support 1,250 MW of additional lignite-based capacity. This will ensure that consumers in the state will continue to get 24*7 uninterrupted power supply in more reliable and competitive manner.