GMDC & GUVNL Partner for Power Plants in Gujarat

New Delhi, Jun 25 (PTI) State-owned GMDC on Tuesday said it has entered into a collaboration with Gujarat Urja Vikas Nigam Ltd (GUVNL) for development of coal-based and lignite-based power stations in Gujarat.

The partnership aims to strengthen energy security through sustainable coal and lignite utilisation, Gujarat Mineral Development Corporation (GMDC) said in a statement.

"Realising the need to replace the fleet of old generating units, besides adding new capacities, the senior leadership of GUVNL and GMDC have collaborated for development of the coal-based an lignite based power stations for energy Security for Vibrant Gujarat," it said.

Gujarat has witnessed a steep rise in the power demand, which has been growing at a compound annual growth rate (CAGR) of more than 6 per cent from last five years.

From 24,544 MW of peak demand in 2023-24, the demand is estimated to reach 36,000 MW by 2031-32, as per a report.

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 aggressively taking steps to develop the lignite mines in Gujarat.

Besides, the PSU is also in the process of operationalising its lignite mines in Gujarat that can support 1,250 MW of additional lignite-based capacity. This will ensure that consumers in the state will continue to get round-the-clock uninterrupted power supply in more reliable and competitive manner.