GMDC and GUVNL amends a power purchase agreement

GMDC stated that amendments facilitating the supply of 250 MW from the Akrimota Thermal Power Station will improve operational efficiency and sustainability.

Gujarat, known for its dedication to energy security, affordability, and sustainability, achieved a significant milestone in its energy landscape wherein the Gujarat Electricity Regulatory Commission (GERC) approved crucial amendments to the power purchase agreement (PPA) of  Gujarat Mineral Development Corporation (GMDC). These amendments governing the supply of 250 MW of power from the Akrimota Thermal Power Station (ATPS) between GMDC and Gujarat Urja Vikas Nigan Limited (GUVNL ), mark a strategic leap towards enhancing operational efficiency and sustainability.

The approved amendments include enhancements to strengthen the sustainable operation of the GMDC Akrimota Thermal Power Station.

The key amendments to this PPA are increased operations and maintenance cost (O&M), higher return on equity (ROE), adjusted station heat rate reducing energy losses and enhanced auxiliary power consumption contributing to efficiency improvement. These amendments are in parity with the PPAs of similar thermal power stations.

These changes are instrumental in GMDC’s efforts to revitalise the Akrimota Thermal Power Station (ATPS), ensuring the availability of low-cost to GUVNL and for that, GMDC has received an in-principle approval for a one-time provisional capital expenditure. This step is a win-win approach by the Govt. of Gujarat for both the PSUs, ensuring enhanced power availability, operational performance, higher efficiency, and reliability.

GMDC’s proactive and calculated rescaling of the ATPS represents the company’s effort to safeguard the interests of its investors. This initiative signifies substantial progress towards ensuring the turnaround and sustainable profitability of GMDC’s power asset, which was continually bleeding earlier.