Bhavnagar Energy Co Ltd, which is a company promoted by GSPL, GSIL, GMDC, GACL, GIPCL, GNFC and GSFC is setting up a 500 MW (2 x 250 MW ) thermal unit in Padwa village in Ghogha taluka, 25 kms from Bhavnagar. The power unit will be a pit based lignite unit and based on circulating fluidised bed technology and is expected to be completed by 2012. The company has already invited tenders for civil construction works. GMDC had been granted exclusive rights to mine lignite in the state will be providing lignite for the project.
BHEL has been awarded the BTG package. McNally Bharat, Gammon India, Marg Ltd has been awarded the other civil structural works.