Gujarat Mineral Development Corporation Ltd. (GMDC), a Government of Gujarat enterprise, has signed a Memorandum of Understanding (MoU) with NTPC Ltd, a Maharatna public sector company, to explore the utilisation of coal from GMDC’s coal blocks for power generation and supply to distribution utilities and other end users.
The MoU establishes a structured framework to examine the feasibility of supplying coal from GMDC’s coal blocks in Odisha for NTPC’s existing and upcoming power projects.
The collaboration is aimed at strengthening domestic energy security and ensuring affordable power supply, particularly to Gujarat’s distribution companies, subject to regulatory approvals.
Under the proposed arrangement, NTPC will assess the development of power projects, including feasibility studies and preparation of detailed project reports. GMDC, in turn, will ensure structured coal supply from its blocks, backed by appropriate quality and quantity assurance mechanisms.
Both companies will jointly evaluate optimal coal evacuation logistics from mines to power stations, particularly from the Baitarni West Coal Mine in Odisha, which primarily produces G-11 grade coal. The proposed structure will follow a cost-plus pricing framework.
Subject to viable project outcomes and power offtake arrangements, formal agreements, including Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA), are expected to be executed.
GMDC Managing Director Roopwant Singh said the collaboration marks a key step towards optimal utilisation of the company’s coal resources. He added that fast-tracking the Baitarni West Coal Mine towards operationalisation will anchor the initiative and contribute meaningfully to energy security while upholding sustainable development commitments.