Gokul Refoils in pact with GMDC for 80 MW power plant

Ahmedabad-based edible oil processing major Gokul Refoils & Solvent Ltd is planning to set up an 80 MW lignite-based thermal power station in association with the Gujarat Mineral Development Corporation near Tadkeshwar in Surat district. The company expects the project cost to be around Rs460 crore.

According to a company release, Gokul will hold of 74 per cent equity in the joint venture for the power plant, while GMDC will hold the remaining 26 per cent.

The project is being developed on a land mass of around 61 hectares.

State-owned GMDC will ensure the entire raw material supply, including coal, lignite and limestone.

The project would be beneficial in terms of cost savings, as the captive user would derive power from the project at the cost of Rs3.40 per kilowatt hour as against the grid rate of Rs5.50 per kWh.

The plant capacity is divided in parts of 55 mw, which would be supplied to GMDC (20 MW) and Gokul Group (35 MW). The remaining 25 MW will be available for sale to Gujarat Urja Vikas Nigam Limited (GUVNL) and other parties.

The two entities have also agreed in principle to enhance the size of power project to 135 MW, the company said in a statement issued to the Bombay Stock Exchange today.

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.