Gmdc & #39;S 250mw Project To Kick Off By Nov 2003

Gujarat Mineral Development Corporation(GMDC)'s Rs 1338.43 crore Akrimota thermal power project, with an annual production capacity of 250 MW, will commence operations by November 2003. This plant is taking shape at Nani Chher, taluka Lakhpat in the Kutch district of Gujarat.

Ashok Narayan, managing director of GMDC, said the debt-equity ratio for the project is 80:20. The finance will be raised through financial institutions and banks.

He informed the project is divided into two units of 125 MW each. The first unit will commence by November 2003 and the second will kick off by May 2004.

Talking about the raw materials, Narayan said while exploring for minerals, we discovered the most cost-effective way to generate energy. Lignite is cheaper and available in plenty in Gujarat. Moreover, lignite makes a viable and profitable feed to a power plant.

Lignite and lime are our main raw materials for power generation and these are available in abundance in our own mines. Moreover, a plant located near the mines saves on transportation costs.

At present, the Gujarat Electricity Board is having a plant with an annual capacity of 215 MW which is divided into three units.

Narayan mentioned there is a short supply of about 500 to 1000 MW of power which, with the commencement of our plant, will be eased to some extent. Power being the basic building block of the economy, the addition will be helpful in meeting the needs of industries.