New Delhi: State-owned GMDC on Tuesday said it has collaborated with Gujarat Urja Vikas Nigam Ltd (GUVNL) for development of coal-based and lignite-based power stations in Gujarat.

The partnership aims to strengthen energy security through sustainable coal and lignite use, Gujarat Mineral Development Corporation (GMDC) said in a statement.

It said, “Realizing the need to replace the fleet of aging generating units, besides adding new capacities, the senior leadership of GUVNL and GMDC have taken up the development of coal based lignite based power stations for energy security for Vibrant Gujarat. Has cooperated for."

Gujarat has seen huge growth in electricity demand, growing at a compound annual growth rate (CAGR) of more than 6 percent for the last five years.

According to a report, from the peak demand of 24,544 MW in 2023-24, the demand is estimated to reach 36,000 MW by 2031-32.

The present initiative is designed to load balance the remaining surge in power demand and meet the late evening peak requirement.

Working in this direction, GMDC is aggressively taking steps to develop lignite mines in Gujarat.

Additionally, the PSU is also in the process of operationalizing its lignite mines in Gujarat which can support 1,250 MW additional lignite-based capacity. This will ensure that consumers in the state continue to get uninterrupted power supply round the clock in a more reliable and competitive manner.