GMDC to focus on lignite production amid rising SME demand

08 Jul 2022 CW Team

The Gujarat Mineral Development Corporation (GMDC) will expand its lignite coal production to gain from small and medium enterprises (SMEs) looking for cheaper fuel.

State-run GMDC produced 8.5 million tonnes of lignite last year and plans to reach 10 million tonnes this year. “In the last six months, we have added 400 more customers, and customers are increasing day by day. Our customer base among MSMEs in textiles, chemicals, and ceramics along with captive power plants is increasing since coal prices continue to remain high. Hence, we are increasing our lignite production this year by an additional 1.5 million tonnes even as we look to add more mines in near future,” said a GMDC spokesperson.

The company will add six more mines, leaving it with a total of nine in the next four-five years. GMDC employs Deloitte for fast-tracking new lignite mining projects.

While coal prices are as high as Rs 8000 to Rs 10,000 per tonne and more, average lignite prices are around Rs 4,000-4,500 per tonne, making it more viable for MSMEs.

Apart from lignite mining expansion, the company is working at improving mining for bauxite, which is used in alumina, apart from mining of fluorspar.

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