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GMDC and GUVNL Collaborate to Enhance Energy Security of Gujarat

The State of Gujarat has experienced a significant surge in the power demand which has been growing at a compound annual growth rate.

June 27, 2024. By News Bureau

Gujarat Urja Vikas Nigam Limited (GUVNL) and Gujarat Mineral Development Corporation (GMDC) have partnered to enhance energy security of Gujarat. This initiative has been inspired from the common goals of Prime Minister of India, Narendra Modi, for an inclusive growth encouraging investments and making India self-reliant in power sector.   

The State of Gujarat has experienced a significant surge in the power demand which has been growing at a compound annual growth rate (CAGR) of over 6 percent since last 5 years. From 24544 MW of peak demand in FY 2023-24, the demand is expected to reach ~36000 MW by FY 2031-32 (as per 20th EPS Report, CEA).

The Government of Gujarat (GoG) has established the framework to guarantee energy security for the State through the visionary leadership of Chief Minister, Bhupendrabhai Patel, and the departments of Industries & Mines (IMD) and Energy and Petrochemical Department (EPD), which is led by, Kanubhai Desai.

The framework signed on June 25, 2024, in presence of Minister of Finance, Energy and Petrochemical, GoG brings together the Power and Mining Utilities, GUVNL and GMDC to address the long-term energy security of the State. Acknowledging the need to upgrade existing generating units in addition to introducing new ones, the senior management of GUVNL and GMDC has joined forces to develop coal and lignite based power plants for energy security in a vibrant Gujarat. This strategic alliance demonstrates a shared commitment to enhancing energy security by using lignite and coal in a sustainable manner.

Commenting on the development, Kanubhai Desai, Minister of Finance, Energy and 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 committed to taking strong action to develop renewable energy projects and are aware of the need to lower carbon footprints. The current initiative is aligned to meet the residual surge in power demand for load balancing and meeting the late evening peak requirement. With this goal in mind, GMDC has been moving quickly to develop the Gujarati lignite mines that the Indian government has allotted. Expanding on this idea, 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.
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