GMDC Signs MoU with NTPC for Coal Supply Exploration
Filing Summary
Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Memorandum of Understanding (MoU) with NTPC Limited to explore coal supply for power generation. The agreement focuses on utilizing coal from GMDC’s blocks in Odisha for NTPC’s power projects. The collaboration includes feasibility studies, project reports, and potential formal agreements like Fuel Supply Agreements and Power Purchase Agreements. This initiative aims to enhance energy security and affordable power supply, particularly for Gujarat Distribution Companies, subject to regulatory approvals.
Gujarat Mineral Development Corporation Ltd. (GMDC) has entered into a Memorandum of Understanding (MoU) with NTPC Limited to explore the supply of coal for power generation. The MoU was signed on 26 February 2026 and focuses on utilizing coal from GMDC’s blocks in Odisha for NTPC’s existing or upcoming power projects.
The agreement provides a framework for examining the feasibility of coal supply from GMDC’s coal blocks, specifically targeting NTPC’s power projects. The collaboration will involve feasibility studies and the preparation of detailed project reports under Section 62 of the Electricity Act, 2003. GMDC will ensure structured coal supply with quality and quantity assurance mechanisms.
Both GMDC and NTPC will jointly examine optimal coal evacuation from mines to power stations, particularly from the Baitarni West Coal Mine in Odisha. The coal is primarily of G-11 grade and will be supplied under a structured cost-plus pricing framework. Subject to feasible outcomes and power offtake arrangements, formal agreements such as Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA) may be executed.
The collaboration aims to enhance domestic energy security and provide affordable power supply, particularly for Gujarat Distribution Companies, subject to applicable approvals and regulatory provisions. The initiative is part of GMDC’s efforts to ensure optimal utilization of its coal resources.
NTPC Limited is a Government of India Maharatna company focused on power generation. It operates various power projects across India and is involved in the development of new power generation capacities. The company emphasizes sustainable and efficient energy production.
Gujarat Mineral Development Corporation Ltd. is a leading state-owned mining enterprise and a Public Sector Undertaking of the Government of Gujarat. It operates five lignite mines across Kutch, South Gujarat, and the Bhavnagar region, supporting critical energy and industrial requirements. GMDC is recognized as the largest merchant seller of lignite in India, with a strong track record of responsible mining and resource development.