GMDC and GUVNL Join Hands to Charge Gujarat’s Future: Partners in Energy Security for a Vibrant Gujarat

Gaining inspiration from the shared vision of Hon’ble Prime Minister of India, Shri Narendra Modi, for an inclusive growth, promoting investments and making India self-reliant in power sector, the Government of Gujarat has taken this initiative for energy security of the State.

The State of 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 % since last 5 years. From 24544 MW of peak demand in FY 2023-24, the demand is estimated to reach ~36000 MW by FY 2031-32 (as per 20th EPS Report, CEA). Under the visionary leadership of the Hon’ble Chief Minister, Government of Gujarat (GoG), Shri Bhupendrabhai Patel, the Energy & Petrochemical Department (EPD) headed by Hon’ble Minister Shri Kanubhai Desai and Industries & Mines Department (IMD) of GoG have framed the contours to ensure energy security for the State. The framework signed on 25th June 2024 in presence of Hon’ble Minister of Finance, Energy & Petrochemical, GoG brings together the Power and Mining Utilities M/s.Gujarat Urja Vikas Nigam Limited (GUVNL) and M/s.Gujarat Mineral Development Corporation (GMDC) to address the long-term energy security of the State. Realizing 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 & Lignite based power stations for Energy Security for Vibrant Gujarat. This strategic partnership underscores a collective dedication to bolster energy security through sustainable coal & lignite utilization.

Commenting on the development, Shri Kanubhai Desai, Hon’ble Minister of Finance, Energy & Petrochemical, GoG said - “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."

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 aggressively 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 the State of Odisha. With a cumulative mineable coal reserve of 660 Million Metric Tonnes (Geological reserve – 1700 Million Metric Tonnes), both the mines together can support a thermal capacity of ~4400 MW. Besides, GMDC is also in the process of operationalizing its lignite mines in Gujarat which can support 1250 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.