GMDC to increase lignite production by additional 1.5 MT this year

State-owned Gujarat Mineral Development Corporation (GMDC) on Thursday said it is augmenting lignite output by further 1.5 million tonnes this year.

The development assumes significance as the PSU is targetting to build up its lignite production in a bid to support Micro, Small and Medium Enterprises (MSMEs) eyeing for cheaper fuel.

GMDC Managing Director Roopwant Singh said that its customer base among MSMEs in textiles, chemicals, and ceramics along with captive power plants is increasing. Hence, the company is increasing its lignite production this year.

"This will help us minimising the constantly increasing demand-supply gap and catering the energy requirements in the state," he said.

The PSU has invited bids for its Surkha (N) mine in Bhavnagar from lignite mining contractors.

The company produced 8.5 million tonnes of lignite last year and plans to increase it to 10 million tonnes this year.

"The RFP for lignite Mining at Surkha (N), Bhavnagar, includes two packages with a tenure of six years," the company said in a statement.

The estimated quantity of lignite to be extracted under this project will be more than 200 lakh tonnes.

Currently, GMDC has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region.