Gokul rRefoils gets government nod to expand power plant

AHMEDABAD: Edible oil maker Gokul Refoils & Solvent Limited (GRSL) received government approval for enhancing the capacity of its upcoming lignite based thermal power plant from 80 MW to 125 MW.

The Rs 670 crore, the lignite based thermal power project is a joint venture between the Gokul Group and state owned Gujarat Mineral Development Corporation ( GMDC) in the equity ratio of 74:26. Slated to be set up at near at Surat, the project will be funded by a combination of debt and equity in the proportion of 70:30.

Commenting on the development, GRSL Corporate Strategy VP Praveen Khandelwal, said: “We are happy that the long pending approval for the project has come in. The commencement of the plant will ensure uninterrupted supply of power for our facilities and will be beneficial in terms of cost saving for both the parties ”

GMDC has committed lignite and limestone supplies to the project. GRSL and GMDC both would be beneficial in terms of cost savings as the captive user would derive power from the project at Rs.3.40 per unit as against the grid rate of Rs.5.50 per unit, claimed the company.

GRSL has marketing and distribution networks for its edible oil brands ‘Gokul’ and ‘Zaika’ in 23 states. It also supplies products to United States, South Korea, European Union, China, Singapore, Indonesia, Malaysia and Vietnam.