The Gujarat Electricity Regulatory Commission (GERC) has approved key changes to the Power Purchase Agreement (PPA) between Gujarat Mineral Development Corporation (GMDC) and Gujarat Urja Vikas Nigam Limited (GUVNL). This agreement governs the supply of 250 MW of power from the Akrimota Thermal Power Station (ATPS).
The amendments aim to improve the efficiency and sustainability of the Akrimota Thermal Power Station. Key changes include increased Operation & Maintenance (O&M) costs, higher Return on Equity (ROE), adjusted Station Heat Rate to reduce energy losses, and enhanced Auxiliary Power Consumption to boost efficiency. These changes align with the PPAs of similar thermal power stations.
To support these improvements, GMDC has received provisional approval for a one-time capital expenditure of Rs. 293 Crores. This revised PPA will enhance power availability and operational performance, benefiting both GMDC and GUVNL.
Shri Roopwant Singh, IAS, Managing Director of GMDC, stated, “The rescaling of ATPS is a significant milestone. This initiative ensures the turnaround and sustainable profitability of GMDC’s power asset, which faced challenges in the past.”
Gujarat Mineral Development Corporation Limited is a top mining company in India. It is a State Public Undertaking of the Government of Gujarat. The state-owned company currently operates five lignite mines located in Kutch, South Gujarat, and the Bhavnagar region. It is said to be the largest merchant seller of lignite in the country.
