The Hindu Business Line : GMDC looks for coal mine partners in Africa

Coal supplies
The company wants to make the commodity available to power generating companies in India.
Plans to invest Rs 20,000 for its projects in Chhattisgarh and Orissa.

Virendra Pandit

Gandhinagar, May 11 After the Adani Group’s foray into Indonesia and Gujarat NRE’s into Australia for coal, the state-owned Gujarat Mineral Development Corporation (GMDC), now diversifying into power generation projects in joint ventures in Gujarat and other States, plans to acquire coal mines in Africa to make the commodity available to power generating companies in India.

“We are looking for alliance on a partnership basis in South Africa, Botswana and other coal-rich countries of the Continent,” official sources told Business Line.

In view of the prevailing socio-political situation in the African countries, any outside company normally picks up a locally influential partner close to the Government.

“We are aware of this. We would like to have a private partner and acquire mining rights. We then plan to market this coal to India, primarily to power generation plants,” the sources said.

GMDC is also trying to forge tie-ups with its counterparts and private parties in Puducherry, Kerala, Delhi and Maharashtra in acquiring coal blocks for joint development and setting up power generation plants.

Project plan

GMDC, through its proposed joint ventures, plans to invest Rs 20,000 crore in setting up three power projects in two coal-rich States — Chhattisgarh and Orissa — to generate a total of 4,500 MW of electricity, of which 2,750 MW would be available to Gujarat by 2012.

Of these, two plants would be in Chhattisgarh to generate 2,750 MW, providing 1,700 MW of power to Gujarat. Similarly, one plant would be in Orissa to generate 1,750 MW and provide 1,050 MW to Gujarat. This would help Gujarat tide over the deficit of 2,500 MW at current levels.

The Union Ministry of Coal had allotted the Morga-II coal block in Chhattisgarh to GMDC. It has also planned a joint venture with Jaypee Associates to set up a cement plant in Kutch (24 lakh tonnes annual capacity) which, together with GMDC, would have equity with Gokul Group to set up a captive power plant (125 MW) in Surat district.

To facilitate these plans, GMDC would need huge quantities of coal on a long-term supply basis for which it is not only reaching out to other States but also looking to acquire coal mines abroad.

Lignite substitute

Interestingly, within Gujarat, GMDC has virtually ended the dependence of local industry on coal-fuel from other States, offering them lignite as a more cost-effective fuel substitute. It mines nearly nine million tonnes of lignite annually from its mines in Kutch, Bharuch and Bhavnagar districts of the State.

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