The Gujarat Mineral Development Corporation's proposal to directly sell power to Hindustan Zinc in Rajasthan has been shot down by the Gujarat government. This was the first proposal by an independent power project to directly sell power to a bulk consumer. However, the state has proposed that instead of direct sale of power, it may consider giving distribution rights to IPPs like GMDC in the same region, where their power plants are located. Due to a financial crunch faced by the Gujarat Electricity Board, most IPPs operating in the state have been scouting for alternative consumers to sell power.