GMDC to increase brown coal production to help MSMEs access cheaper fuel

Ease of Doing Business for MSMEs: The PSU has invited bids to increase lignite extraction, popularly called as brown coal, by 1.5 million tonnes.

GMDC to increase brown coal production to help MSMEs access cheaper fuel
GMDC has plans to boost lignite production by 1.5 million tonnes taking it to 10 million tonnes this year.

Ease of Doing Business for MSMEs: The state-owned mining company Gujarat Mineral Development Corporation (GMDC) has announced increasing its lignite production, a form of the lowest grade coal, to 10 million tonnes this year to support micro, small and medium enterprises (MSMEs) access cheaper fuel.

To augment the production, the PSU has invited bids for its Surkha (N) Lignite Mine in Bhavnagar from Lignite Mining contractors to fuel further progress.

GMDC produced 8.5 million tonnes of brown coal last year, and has plans to boost its production by 1.5 million tonnes taking it to 10 million tonnes this year. 

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Roopwant Singh, IAS, Managing Director, GMDC, said, “Our customer base among MSMEs in textiles, chemicals, and ceramics along with captive power plants is increasing. Hence, we are increasing our lignite production this year by an additional 1.5 million tonnes even as we look to add more mines shortly.”

This will help minimize the constantly increasing demand-supply gap and cater the energy requirements of the small businesses in the state, he noted.

The Request for Proposal (RFP) for mining at Surkha includes two packages with a tenure of six years, said GMDC in the company’s statement.

The packages include work like overburden/ inter burden removal, excavation of lignite from the mine face, transporting and unloading raw lignite amongst others. 

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The company intends to extract more than 200 lakh metric tons of lignite under the project, they mentioned in their statement. 

Apart from Surkha (N), GMDC mines lignite from Tadkeshwar in Surat, Amod (G-19 Extension) in Bharuch and Mata No Madh and Umarsar in Kutch.

In a move to boost lignite production, GMDC had secured permission from the Union Ministry of Environment and Forest earlier this year to mine up to a depth of 135 meters from its earlier approved depth of 94 meters from the lignite mines in Tadkeshwar of Surat district.

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