The Gujarat Government has allotted Gujarat Mineral Development Corporation's
(GMDC) Naini coal block in Orissa, to Adani and Torrent groups. Both the
companies are likely to have 50 per cent share each in the block, which was
awarded to the state-run GMDC by the Union Government in 2006.
GMDC had earlier refused to accommodate the Adani group because of the high
power price charged by the private developer.
While approving the latest allotment, the Gujarat government rejected GMDC's
earlier agreement with Hyderabad-based KSK Energy. The energy company had signed
an agreement with GMDC to develop the block and set up a power plant on the pit
head.