April 13, 2012. State-owned Gujarat Mineral Development Corporation (GMDC) will set up a 200 MW lignite- based power plant near Bhavnagar to exclusively supply power to the textile industry, particularly the spinning sector. GMDC has short-listed Univision Textiles Limited, Ahmedabad Textile Processors Association, Pradeep Overseas and Suryachakra Energy & Infrastructure Limited for partnership in the '1,000 crore project. Lignite to the plant will be supplied from GMDC mines in Bhavnagar district at subsidised rates. Lignite mines in the vicinity of the spinning units will also ease the problems in transportation of the mineral and will ensure long term supply to the spinners. Bhavnagar has 63 million tonne lignite reserves, while the project will require 10 million tonne lignite per annum.