GMDC Signs MoU with NTPC to Explore Coal Supply for Power Generation

Gujarat Mineral Development Corporation Ltd. (GMDC), a Government of Gujarat enterprise, has signed a Memorandum of Understanding (MoU) with NTPC Limited, a Government of India Maharatna company, to explore the utilisation of coal from GMDC's coal blocks for power generation and its sale to distribution utilities and other end users.

The MoU provides a structured framework for examining the feasibility of supplying coal from GMDC's coal blocks in Odisha for use in NTPC's existing or upcoming power projects. The collaboration aims to enhance domestic energy security and affordable power supply, particularly for Gujarat Distribution Companies, subject to applicable approvals and regulatory provisions.

Under the proposed framework, NTPC will evaluate the development of power projects under Section 62 of the Electricity Act, 2003, including the preparation of feasibility studies and detailed project reports, while GMDC will ensure structured coal supply from its coal blocks with appropriate quality and quantity assurance mechanisms. Both GMDC and NTPC will jointly examine optimal coal evacuation from mines to power stations, particularly from the Baitarni West Coal Mine in Odisha, primarily of G-11 grade under a structured cost-plus pricing framework. Subject to feasible outcomes and power offtake arrangements, formal agreements such as Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA) shall be executed.

Commenting on this significant milestone, Shri Roopwant Singh, IAS, Managing Director, GMDC, said: This collaboration represents an important step towards ensuring optimal utilisation of GMDC's coal resources. The fast-tracking of Baitarani West Coal Mine leading to operationalisation in near future is poised to spearhead this initiative to contribute meaningfully towards energy security while maintaining our commitment to responsible and sustainable development."

Shares of Gujarat Mineral Development Corporation Limited was last trading in BSE at Rs. 576.40 as compared to the previous close of Rs. 564.55. The total number of shares traded during the day was 117372 in over 2069 trades.

The stock hit an intraday high of Rs. 579.00 and intraday low of 562.85. The net turnover during the day was Rs. 67173317.00.

Shares of NTPC Limited was last trading in BSE at Rs. 381.85 as compared to the previous close of Rs. 384.90. The total number of shares traded during the day was 449207 in over 23821 trades.

The stock hit an intraday high of Rs. 386.00 and intraday low of 378.30. The net turnover during the day was Rs. 171733431.00.

Source : Equity Bulls

Keywords

GujaratMineralDevelopmentCorporation INE131A01031 GMDC Coal NTPC INE733E01010