Gujarat Mineral Development Corporation Limited Signs MoU with NTPC to Explore Coal Supply for Power Generation
New Delhi: Gujarat Mineral Development Corporation Limited (GMDC) has signed a Memorandum of Understanding (MoU) with NTPC Limited to explore the utilisation of coal from GMDC’s coal blocks for power generation and supply to distribution utilities and other end users.
The announcement was made on February 26, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Focus on Coal Supply from Odisha Blocks
The MoU establishes a structured framework to examine the feasibility of supplying coal from GMDC’s coal blocks in Odisha for NTPC’s existing and upcoming power projects.
A key component of the proposed collaboration includes coal supply from the Baitarni West Coal Mine in Odisha, primarily of G-11 grade, under a structured cost-plus pricing framework.
The initiative aims to:
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Enhance domestic energy security
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Ensure affordable power supply
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Support Gujarat’s power distribution companies, subject to regulatory approvals
Proposed Framework Under Electricity Act, 2003
Under the MoU:
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NTPC will evaluate development of power projects under Section 62 of the Electricity Act, 2003.
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Feasibility studies and Detailed Project Reports (DPRs) will be prepared.
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GMDC will ensure structured coal supply with quality and quantity assurance mechanisms.
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Both entities will jointly examine optimal coal evacuation logistics from mines to power plants.
Subject to positive feasibility outcomes and power offtake arrangements, formal agreements such as Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA) will be executed.
Strategic Importance of Baitarni West Mine
GMDC indicated that the fast-tracking and near-term operationalisation of the Baitarni West Coal Mine is expected to play a central role in this initiative, supporting long-term energy security objectives.
Commenting on the development, Shri Roopwant Singh, IAS, Managing Director of GMDC, stated that the collaboration represents an important step toward optimal utilisation of GMDC’s coal resources while maintaining a commitment to responsible and sustainable development.
Strengthening Energy Security
The partnership reflects closer cooperation between state and central public sector enterprises to strengthen India’s domestic coal-based power generation ecosystem. By integrating mining and power generation planning, the initiative seeks to deliver reliable and cost-effective electricity supply.