The project cost is estimated to be around Rs 460 crore
Sidhpur-based Gokul Group under its legal entity Gujarat Gokul Power Limited is planning to set up a 80 MW lignite based thermal power station near Tadkeshwar district Surat. The company expects the project cost to be around Rs 460 crore.
According to an official communique, the group's flagship company, Gokul Refoils and Solvent Limited is the equity partner of 74 per cent in the power plant, while that of Gujarat Mineral Development Corporation (GMDC) is the rest 26 per cent.
This project is developed under 61 hectares land which has already been acquired and total project cost is Rs 460 crore. The plant capacity is divided in parts of 55 MW which would be supplied to GMDC (20 MW) and Gokul Group (35 MW), and rest 25 MW capacity is available for sale to Gujarat Urja Vikas Nigam Limited (GUVNL) and other parties.
The power plant is expected to be beneficial in terms of cost savings. The power is expected to be available for Rs 3.40 per kwh as against the grid rate of around Rs 5.50 per kwh, the communique stated.
Moreover, with GMDC being part of the project, the power plant will receive 100 per cent committed raw material supply of lignite and limestone from the PSU. The current scarcity of domestic coal allocation is the big advantage to the project as future projects are restricted by lack of fuel supply, the communique further stated.
Meanwhile, Gokul Group and GMDC have in principal agreed to enhance the size of power project from 80 MW to 135 MW.