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GMDC seizes plans to establish power plants at Odisha and Chhattisgarh

10 May 2012 Evaluate

Gujarat Mineral Development Corporation (GMDC) has seized its plans to establish indigenous coal-based thermal power plants with an estimated investment of Rs 20,000 crore to generate 4,000 MW. The company has taken this decision considering uncertainties over the coal blocks allocated to the state PSU.

The Ministry of Coal had allocated the Morga coal block in Chhattisgarh and the Naini block near Angul in Odisha to GMDC, which prompted it to put in place pit-head power generation plans five years ago. However, GMDC’s 2,000 MW power plans went wrong as the Ministry of Environment and Forests declared Morga a “no go” area on environmental concerns.

In the Naini case, company faced a new situation when Adani Power and Torrent Power, which were to jointly set up a power plant near this coal block as end-users, wanted the power plant shifted to Gujarat, in which case GMDC will be shipping the Naini coal to the western state. Now, the Odisha Government has objected to GMDC’s plans to ship coal to Gujarat and urged the Ministry of Coal to cancel the Naini block allocation to GMDC.

GMDC Share Price

733.40 -13.60 (-1.82%)
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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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