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Virendra Pandit

Ahmedabad, Feb. 12 Its main job being mining and minerals, it has had little to do with electricity generation. But State-owned blue-chip company Gujarat Mineral Development Corporation (GMDC), through its proposed joint ventures and sound business model, has emerged as the State’s power manager in other States — it is setting up three power projects in two coal-rich States to generate a total of 4,500 MW, of which 2,750 MW would be available to Gujarat by 2012.

The approximate investments involved, at the rate of nearly Rs 4.5 crore per MW, would be around Rs 20,000 crore and the three plants are planned to be commissioned in the next four years, official sources told Business Line here. GMDC will have 26 per cent equity in all of these joint ventures.

GMDC plans two coal-based thermal power plants in Chhattisgarh to generate 2,750 MW from which 1,700 MW will be provided to Gujarat. It is also setting up a similar plant in Orissa to generate 1,750 MW from which 1,050 MW will be made available to Gujarat. The existing peak power demand in Gujarat is 11,000 MW and supply 8,500 MW. Thus, GMDC’s power sharing in Chhattisgarh and Orissa would make available 2,750 MW to Gujarat, more than its current deficit of 2,500 MW.

For this, the private players will get guaranteed coal from GMDC. Chhattisgarh and Orissa will get one-third of thermal power thus generated by GMDC’s joint ventures, while two-thirds would be sold to Gujarat Urja Vikas Nigam Ltd, which oversees power generation, transmission and distribution of electricity in the State.

In Chhattisgarh, where it owns the Morga II coal blocks, GMDC is setting up two joint ventures with the Hyderabad-based KSK Energy Ventures Pvt Ltd (for 1,750 MW) and Ahmedabad-based Torrent Power Ltd (1,000 MW). Gujarat’s share in the two would be 1,050 and 650 MW, respectively.

The coal block has 350 million tonnes of coal deposits which may last three decades. The sites are, however, yet to be finalised by the Chhattisgarh Government. These power plants are expected to be commissioned by 2012. While KSK will supply power to Gujarat at the rate of Rs 1.92 and a half paisa per unit, TPL at Rs 2 per unit.

GMDC also plans to sign a similar agreement with KSK for the Orissa power plant. The 1,750-MW project at Naini in Orissa would provide 1,050 MW of power to Gujarat at a rate of Rs 1.97 and a half paisa per unit. It would also be commissioned by 2012. Other States are also likely to follow the GMDC business model. GMDC is trying to forge similar alliances in Puducherry, Kerala, Delhi and Maharashtra to jointly develop coal blocks. It is suggesting joint ventures in which GMDC would be majority partners and share power with them, sources added.

More Stories on : New Projects | Power | Gujarat

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