Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Memorandum of Understanding (MoU) with NTPC Limited to investigate the utilization of coal from GMDC’s blocks in Odisha for power projects. This collaboration aims to secure domestic energy supply and affordable power, focusing specifically on coal from the Baitarni West Coal Mine. The framework includes examining feasibility studies and potential Fuel Supply Agreements (FSA).
GMDC Forges Strategic Alliance with NTPC
Gujarat Mineral Development Corporation Ltd. (GMDC), a Government of Gujarat enterprise, has formalized a collaboration with NTPC Limited, a Government of India Maharatna company, by signing a Memorandum of Understanding (MoU) on 26 February 2026. The core objective of this partnership is to explore the potential utilization of coal sourced from GMDC’s operational coal blocks to support NTPC’s power generation needs.
Focus on Energy Security and Coal Blocks
The MoU establishes a structured foundation for assessing the feasibility of supplying coal from GMDC’s assets in Odisha for use in NTPC’s current and future power projects. A central aim of this collaboration is to boost domestic energy security and ensure an affordable power supply, which is particularly relevant for Gujarat Distribution Companies, subject to necessary regulatory clearances.
Operational Framework and Key Mine
Under the proposed structure, NTPC will lead the evaluation of power projects, including detailed feasibility studies. GMDC is tasked with ensuring a structured supply of coal, guaranteeing appropriate quality and quantity. The entities will jointly analyze optimal coal evacuation routes, with specific attention given to the Baitarni West Coal Mine in Odisha, which primarily contains G-11 grade coal. Any subsequent agreements, such as Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA), will depend on successful feasibility outcomes.
Leadership Commentary
Shri Roopwant Singh, IAS, Managing Director of GMDC, highlighted the importance of this milestone, stating that the collaboration represents a significant step toward the optimal utilization of GMDC’s coal resources. He noted that the fast-tracking of Baitarani West Coal Mine is poised to spearhead this initiative in contributing meaningfully to energy security while upholding commitments to responsible and sustainable development.
About GMDC
GMDC operates as one of India’s leading state-owned mining enterprises under the Government of Gujarat. The Corporation manages five lignite mines across regions including Kutch, South Gujarat, and Bhavnagar. GMDC holds recognition as the largest merchant seller of lignite in the country, supported by a proven track record in resource development and responsible mining practices.
Source: BSE
