GMDC to set up lignite-based 250mw power project in Kutch

Suneeta K
28 October 2002

Ahmedabad: Gujarat Mineral Development Corporation (GMDC), one of India’s most profitable public sector units (PSUs), is setting up a lignite-based 250mw power project in Kutch district. “The project, which is already under implementation, will be commissioned by the end of 2002,” say company sources.

The Rs 270-crore enterprise, which started operations with a small sand-crushing plant in Surendranagar to supply graded sand to consumers, is currently ranked as the best-performing PSU in the state of Gujarat, along with the more-recently set up Gujarat State Petroleum Corporation.

The sources add: “Though lignite, also known as brown gold, dominates the current activities of the corporation, GMDC will continue to pursue the development of other minerals simultaneously.” GMDC also runs a flourspar project in Kadipani, Baroda, and a bauxite calcination plant in Gandhsisa, Kutch.

A power plant using lignite as fuel is expected to relieve the burden on the Gujarat State Electricity Board, which has been facing major financial difficulties.

Says GMDC chairman Mukesh Zaveri: “Lignite mining is being undertaken in Kutch after a gap of 25 years. The lignite produced here will cost less to its users because of the reduced distance.”

The total cost of the project has been put at Rs 1340 crore but GMDC has managed more than it needs since financial institutions and banks have pledged assistance of Rs 1,400 crore.