GMDC`s 1000MW Morgha project yet to take off

State-run Gujarat Mineral Development Corporation’s (GMDC) 1,000MW pit-head power project in Chattisgarh is hanging fire almost a year after Torrent Power emerged as the lowest bidder.

GMDC has now referred the project to the chief minister’s office to take a final call.

GMDC, which was alloted Morgha coal block by the Centre had invited bids for the pit-head power project last year where Torrent Power had emerged as the lowest bidder.

A year later, no company has been formally awarded the project. GMDC officials say the ball is in the state government's court and they have now got to take a call. When contacted a senior official in the CMO said they were reveiwing the project.

For Morgha block, GMDC has already entered into an agreement with KSK Energy for setting up 1800 MW power project. "Morgha block has huge reserves of coal so GMDC decided to rope in more than one developer and decided to set up two separate power projects," sources said.

KSK Energy Ventures has also entered into an agreement with GMDC for the Morgha block wherein the company will supply power at Rs 1.92 per unit.

Taking price quoted by KSK as a benchmark, Torrent agreed to sign an agreement with GMDC for Rs 2 per unit for the 1,000 MW power project. GMDC will supply 4 mmt of coal per annum from the Morgha block to the developer and about 120 million tonnes for 30 years.

GMDC will buy power as per the agreed price and further sell it to Gujarat Urja Vikas Nigam Ltd (GUVNL) with a margin of 10 paise per unit.

The state-owned PSU also has the option of holding 26% equity in the two power projects.

When contacted an official of Torrent Power said their bid has been accepted and they were the lowest bidder.