ET reported that Gujarat Mineral Development Corporation will double its lignite mining capacity in Bhavnagar and Kutch to tackle rising demand.

As per report mining capacity in Bhavnagar will be increased from three to five million tonnes and that in Kutch will be raised from 2.4 million tonnes to 4.8 million tonnes. The expansion will increase the company's revenue by INR 450 crore.

The state government announced new mining policy last year and decided to go for value additions in minerals. GMDC was given an exclusive right of mineral development and beneficiation of lignite, bauxite and manganese. Gujarat has 2,676 million tonnes of lignite, 184 million tonnes of bauxite and 2.5 million tonnes of manganese ore reserves.

Mr VS Gadhavi vice chairman of GMDC said that "Demand of lignite is increasing at 10% to 12% in Saurashtra and Kutch because of industrialization. Lignite demand is increasing also because of new power projects and cement plants in the coastal region. To meet the demand, we have decided to increase mining capacity in Bhavnagar and Kutch mines.”

GMDC started lignite mining in Bhavnagar in 2008 and now plans to scale up the capacity to five million tonne per year, which will increase revenue by INR 200 crore. Bhavnagar has lignite reserves of 70 million tonne. Mata No Madh site in Kutch has 22 million reserves, where GMDC plans to double the capacity to 4.8 million tonne from 2.4 million tonne, which will result into lignite production of INR 250 crore more.

Mr Gadhavi further said that "We have completed the technical study and we have applied for permission of central government's ministry of mines and ministry of environment and forests. The process can take even more than a year time.” He added that GMDC board has given approval to the capacity expansion plan. We have a lignite mine in South Gujarat at Tadkeshwar as well, but we are not planning to expand the production.

(Sourced from ET)