Ahmedabad 10th July 2024:
Gujarat, known for its dedication to energy security, affordability, and sustainability achieves a significant milestone in its energy landscape wherein the Gujarat Electricity Regulatory Commission (GERC) recently approved crucial amendments to the Power Purchase Agreement (PPA) of GMDC. These amendments governing the supply of 250 MW of power from the Akrimota Thermal Power Station (ATPS) between Gujarat Mineral Development Corporation (GMDC) and (Gujarat Urja Vikas Nigan Limited (GUVNL), mark a strategic leap towards enhancing operational efficiency and sustainability.
The approved amendments include enhancements aimed at bolstering the sustainable operation of the GMDC Akrimota Thermal Power Station.
The Key Amendments to this PPA are: Increased O&M cost, Higher Return on Equity (ROE), Adjusted Station Heat Rate reducing energy losses and enhanced Auxiliary Power Consumption contributing to efficiency improvement. These amendments are also in parity with the PPA’s of similar Thermal Power Stations.
These changes are instrumental in GMDC’s eƯorts to revitalize the Akrimota Thermal Power Station (ATPS), ensuring the availability of low-cost to GUVNL and for that GMDC has received an in-principle approval for a one-time provisional capital expenditure of Rs. 293 Crores. The revised PPA will give another boost to the project, and it will be a win-win approach by the Govt. of Gujarat for both the PSUs ensuring enhanced power availability, operational performance, higher efficiency, and reliability.
Commenting on the strategic leap, Shri Roopwant Singh, IAS, Managing Director, GMDC said, “GMDC’s proactive and calculated rescaling of the ATPS represents a significant milestone in the company’s effort to safeguard the interests of its investors. This initiative signifies a substantial progress towards ensuring the turnaround and sustainable profitability of GMDC’s power asset which was continually under stress earlier”.
About Gujarat Mineral Development Corporation Limited
(https://www.gmdcltd.com/en; BSE: 532181; NSE:GMDCLTD)
Gujarat Mineral Development Corporation Limited is one of the leading mining players in India. It is a State Public Undertaking of the Government of Gujarat. The state-owned company currently has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region. It is purportedly the largest merchant seller of lignite in the country.
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