Gujarat Mineral Development Corporation Limited (GMDC) has signed a memorandum of understanding with NTPC to explore options for coal supply to power generation projects. The agreement will see the two state-run entities undertake joint technical and commercial assessments to evaluate coal availability, logistics and supply frameworks. The memorandum aims to identify sustainable supply chains that can support NTPC's generation portfolio while leveraging GMDC's mineral resources. The move reflects broader efforts to secure fuel sources for reliable power output.

The collaboration will involve assessments of mining capacity, transportation corridors and quality specifications required by thermal plants. GMDC will provide data on identified coal blocks and production potential, and NTPC will outline operational requirements, plant specifications and procurement timelines. Both parties will examine feasibility of long-term supply contracts, rail and port connectivity and options for blending to meet calorific value requirements. The exercise is intended to reduce fuel supply risks and promote planning certainty for upcoming projects.

Officials said the memorandum establishes a framework for periodic reviews, joint studies and the formation of technical committees to oversee implementation. The partnership is expected to include environmental and regulatory compliance evaluations to align mining and supply practices with applicable norms. Stakeholders will also assess cost structures, logistics optimisation and measures to enhance coal handling efficiencies at receiving stations. The joint work is designed to deliver actionable recommendations that can inform future procurement and investment decisions.

The agreement does not yet constitute binding commercial commitments and will be followed by detailed due diligence and negotiation of definitive contracts where appropriate. Both GMDC and NTPC indicated that any subsequent arrangements would consider economic viability, energy security and strategic priorities of the power sector. The memorandum is presented as a step towards strengthening fuel linkages between a mineral developer and a major power producer to support stable electricity supplies. Implementation timelines will be determined as studies are completed.