Gujarat first state to implement coal utilisation between power units

State invites developers to sell power at less than Rs 2.82/unit to receive cheap coal

Setting a precedent, the Gujarat government has issued a tender for power developers to receive cheap coal marked for the state in return for selling coal-based power at less than Rs 2.82 a unit.

Through the auction, Gujarat will transfer the coal allocated to power generating stations owned by Gujarat State Electricity Corporation (GSECL) to more fuel-efficient private power plants.

The reverse auction would be held in September for procuring 1,000 megawatt (Mw) of power. The successful power plant would be selling electricity to the state from October 1 to June 30, 2018, said officials in the Ministry of Power.