State-run Gujarat Mineral Development Corporation (GMDC) will invest Rs 300 crore to maximize power generation at its 250MW Akrimota (Kutch) power plant.
GMDC is one of the cheapest power suppliers to GUVNL, and with the plant reaching at least 200MW of power generation, GUVNL will get more electricity at cheaper prices.
The Akrimota power plant uses lignite and was an ambitious forward integration project of GMDC but has remained an underperformer. The company believes the new investment will change this.
The GMDC will spend Rs 800 crore in 2023-24 to acquire land for six new lignite projects which have total reserves of more than 350 million tonnes.