Gujarat Mineral Development Corporation to spend Rs 300 crore to revamp 250MW Kutch power plant
The state government has allowed capital pass-through to GMDC and the company will start the procedure for a revised PPA at around Rs 3.20 per unit
State-run Gujarat Mineral Development Corporation (GMDC) will invest Rs 300 crore to maximize power generation at its 250MW Akrimota (Kutch) power plant.
The plant has been an underperformer for the last 16 years and has one of the cheapest power purchase agreements (PPA) with GUVNL due to this.
The state government has allowed capital pass-through to GMDC and the company will start the procedure for a revised PPA at around Rs 3.20 per unit.
He added that GMDC is one of the cheapest power suppliers to GUVNL, and with the plant reaching at least 200MW of power generation, GUVNL will get more electricity at cheaper prices.
The Akrimota power plant uses lignite and was an ambitious forward integration project of GMDC but has remained an underperformer. The company believes the new investment will change this.
Singh said GMDC will spend Rs 800 crore in 2023-24 to acquire land for six new lignite projects which have total reserves of more than 350 million tonnes.
