The Hindu Business Line : GMDC diversifying into thermal power sector

Ahmedabad May 13 The profit-making state-owned Gujarat Mineral Development Corporation (GMDC), which has mainly been into coal mining so far and now eyeing sapphire mining at Doda in Jammu and Kashmir as well, is all set to enter thermal power generation sector in joint venture.

It is also looking at various coalfields outside Gujarat either for coal mining alone or with coal-based power plants, its Chairman and Managing Director, Mr C.J. Jose, told Business Line here.

Blocks offered

It had recently got a coal block at Jaynagar in Jharkhand, but had requested that State Government to give another as there was some dispute due to the place being used for dumping fly-ash by the State Electricity Board and the presence of brick manufacturing units nearby.

Mr Jose said GMDC had also applied to the Centre for 10 other blocks with coal-based thermal power generation plans and another 15 blocks for coal mining rights only in Orissa, Chhattisgarh and Jharkhand, besides other States.

For some of these power generation projects, it has signed MoUs with major players such as Torrent, KSK Energy Ventures and others.

Enhance capacity

In the next five to ten years, Mr Jose said that GMDC aimed to become a 5,000-MW capacity generator in association with both private players and State public sector units. This would involve an investment of around Rs 25,000 crore.

In order to generate this capacity, the corporation is likely to unlock nearly Rs 500 crore by offloading 23 per cent of equity, out of the present 74 per cent (the Government of Gujarat would then be left with 51 per cent). For this, a follow-on issue may be considered in the next three to five years, he added.

These plans aimed at transforming the hitherto mainly coal-mining company into a diversified, mining-cum-power conglomerates by entering into joint ventures. And this transformation may start in the next 15 days with GMDC hoping to get the nod from the Chhattisgarh Government for the 2,750-MW coal-based project at Morga, allotted by the Union Ministry of Coal last year.

The company expects its turnover to increase from Rs 600 crore in 2006-07 to Rs 1,000 crore in 2007-08, with the additional revenues of more than Rs 300 crore from its 250-MW plant at Akrimota.

More Stories on : Power | Diversification | Coal | Gujarat

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