Gujarat's Strategic Move to Meet Rising Power Demand

27 Jun 2024 CW Team

To ensure the state meets this anticipated demand, Gujarat Urja Vikas Nigam Limited (GUVNL) and the Gujarat Mineral Development Corporation (GMDC) signed a memorandum of understanding (MoU) on June 25, 2024. The signing ceremony, attended by the Chief Minister of Gujarat, Shri Bhupendrabhai Patel, and Shri Kanubhai Desai, Minister of Finance, Energy & Petrochemical, marks a significant milestone in the state's energy strategy. The MoU focuses on developing coal and lignite-based power stations.

"The signing of this MoU marks a historic milestone as we embark on a journey to secure the energy future of Vibrant Gujarat," stated Kanubhai Desai. "This landmark agreement between GUVNL and GMDC is a testament to our shared dedication to energy excellence. Through collective wisdom and strategic partnership, we are committed to providing reliable and sustainable power for all, ensuring that our state continues to thrive and grow. A self-reliant and Vibrant Gujarat will also be a force multiplier for the country?s economy."

The collaboration aims to leverage significant coal reserves allocated by the Government of India, including two large commercial mines in Odisha with a cumulative mineable coal reserve of 660 million metric tonnes, supporting a potential thermal capacity of approximately 4,400 MW. Additionally, GMDC is advancing its lignite mining operations in Gujarat, expected to add 1,250 MW of lignite-based capacity.

These developments align with Gujarat's goal of ensuring a continuous power supply and meeting its late evening peak power demands more reliably and competitively, securing the state's energy future.

In a strategic effort to address its increasing power requirements, the Government of Gujarat has projected a demand surge to approximately 36,000 MW by FY 2031-32. This significant rise from the current 24,544 MW in FY 2023-24 highlights the state's energy ambitions, driven by a compound annual growth rate of over 6% over the past five years. This forecast was outlined in the 20th Electric Power Survey (EPS) Report by the Central Electricity Authority (CEA). To ensure the state meets this anticipated demand, Gujarat Urja Vikas Nigam Limited (GUVNL) and the Gujarat Mineral Development Corporation (GMDC) signed a memorandum of understanding (MoU) on June 25, 2024. The signing ceremony, attended by the Chief Minister of Gujarat, Shri Bhupendrabhai Patel, and Shri Kanubhai Desai, Minister of Finance, Energy & Petrochemical, marks a significant milestone in the state's energy strategy. The MoU focuses on developing coal and lignite-based power stations. The signing of this MoU marks a historic milestone as we embark on a journey to secure the energy future of Vibrant Gujarat, stated Kanubhai Desai. This landmark agreement between GUVNL and GMDC is a testament to our shared dedication to energy excellence. Through collective wisdom and strategic partnership, we are committed to providing reliable and sustainable power for all, ensuring that our state continues to thrive and grow. A self-reliant and Vibrant Gujarat will also be a force multiplier for the country?s economy. The collaboration aims to leverage significant coal reserves allocated by the Government of India, including two large commercial mines in Odisha with a cumulative mineable coal reserve of 660 million metric tonnes, supporting a potential thermal capacity of approximately 4,400 MW. Additionally, GMDC is advancing its lignite mining operations in Gujarat, expected to add 1,250 MW of lignite-based capacity. These developments align with Gujarat's goal of ensuring a continuous power supply and meeting its late evening peak power demands more reliably and competitively, securing the state's energy future.

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