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GMDC, Gokul JV to invest Rs 670 cr in thermal plant

22 Jul 2011 Evaluate

Gujarat Minerals Development Corporation (GMDC) and Gokul Refoils and Solvent Ltd (GRSL) will invest Rs 670 crore in setting up a 125 megawatt (MW), lignite-based thermal power plant in Surat district of the State. The project will be completed in three years. The power project is a joint venture between the Gokul Group and GMDC in the equity ratio of 74:26, to be funded by a combination of debt and equity in the proportion of 70:30.

It will be set up in the 61 hectares of land GRSL has bought at Tadkeshwar in Surat district recently. While the Gokul Group, GMDC and its associates will share 60 MW each of the generated power, the balance five MW will be available to the open market. GMDC has lignite mines next to the project and will supply 8.5 to 9 lakh tonnes of the fuel required per annum through a conveyor belt.

GMDC has committed 100 per cent raw material supply (lignite and limestone) to the project which is a big advantage as other future power projects are restricted by lack of fuel supply because of current scarcity of domestic coal allocation. The two JV partners would be benefited in terms of cost savings as the captive user would derive power from the project at Rs 3.40 per unit as against the grid rate of Rs 5.50 per unit. The plant will ensure uninterrupted power supply to GRSL.crackcrack

GMDC Share Price

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Company Name CMP
Coal India 438.70
NMDC 89.78
GMDC 733.40
Sandur Manganese 218.35
MOIL 327.60
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