GMDC to spend Rs 800 cr to develop 6 lignite mines in state
Lignite is considered “brown coal” and is used for producing electricity.
3 min read
In the adjacent Surat district, the Ghala block with 17 million tonnes of lignite near the existing Tadkeshwar mine is the sixth block being developed. (Express Photo) State-run Gujarat Mineral Development Corporation Limited (GMDC), among the biggest lignite producers in the country, has decided to develop six new mines with a total reserve of around 400 million tonnes.
“The company will be spending Rs 800 crore in the financial year 2023-24 for just acquiring the land—in Kutch, Bharuch and Surat districts—needed to develop these new mines. The ground-breaking for all the six projects are expected to be conducted within the next 12-15 months,” Roopwant Singh, GMDC managing director, told The Indian Express.
Lignite is considered “brown coal” and is used for producing electricity.
Of the six projects, three—Lakhpat, Bharkhandam and Panandhro Extension—that are in Kutch district are “dual mineral” projects. Cumulatively they have 135 million tonnes of lignite and 1,800 million tonnes of limestone. “Earlier, we had no plans to monetise limestone that is both cement and chemical-grade. Now, we plan to mine it systematically through a surface miner. But by the current estimates, only 50 per cent of the limestone lying on top of the bed of lignite can be used,” Singh said.
The other three new projects are in South Gujarat. The biggest block among the six—at Valia in Bharuch district—has an estimated lignite reserve of 200 million tonnes. In the same district, a new mine—Damlai—with reserves of 35 million tonnes is also being developed.
In the adjacent Surat district, the Ghala block with 17 million tonnes of lignite near the existing Tadkeshwar mine is the sixth block being developed.
The six mines have an estimated life span of 10-30 years where GMDC is expected to spend an estimated Rs 13,000 crore during the life cycle of the mines. Currently, GMDC has lignite mines at Tadkeshwar, Mata no Madh, Umarsar and Bhavnagar. Panandhro mines have been exhausted, while those at Rajpardi are also nearing the completion of its life.
Currently, Mata no Madh is the biggest mine accounting for nearly one-third of the lignite produced by the company. “The existing 8-9 million tonnes of lignite production of the company will be scaled up to 9-10 million tonnes by 2023-24 and by 2025-26, we plan to take the production to 30-50 million tonnes,” Singh said.
In Kutch, the Lakhpat block is spread on 3,000 hectares, Panandhro Extension on 1,000 hectares) and Bharkhandam on 5,000 hectares.
In South Gujarat, the Ghala block is spread over 1,600 hectares, Damlai on 1,400 hectares and Valia on 3,000 hectares.
These mines have life-cycles ranging between 10-30 years. “While Kutch has a sparse population, land acquisition in South Gujarat will be more expensive,” Singh added.
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