Centre reserves 100 mn tonnes lignite from Valia mine for Gujarat

Market price of the lignite stock is at pegged at Rs 10,000 cr

 

The Union government has accepted Gujarat's proposal to reserve about 100 million tonnes lignite for state mining major Gujarat Mineral Development Corporation (GMDC). The stock, whose market price is estimated to be around Rs 10,000 crore, will be reserved from Valia lignite mine in Bharuch district of the state.

"We proposed to the Centre to reserve lignite to meet the demand of the state and it has been accepted. GMDC will get about 80 to 100 million tonnes of lignite. Because of this decision, industries will get lignite at reasonable rates and supply time will also reduce," said Saurabh Patel, energy minister of Gujarat.

About 2,900 million tonnes of lignite stock is available in Bharuch, Surat, Kutch and Bhavnagar districts of Gujarat and state produces about 10-11 million tonnes every year from these mines. Industries such as ceramic, bricks manufacturers, textile and chemical industry use lignite in Gujarat. GMDC also supplies lignite to Akarimota Lignite Power plant and Thermal Power station in Kutch district.

Patel said, "Gujarat is far behind as compared to West Bengal, Jharkhand, Orissa and Andhra Pradesh in coal mining. In this condition, the state depends on lignite for fuel. "

According to state government estimate, demand for lignite will increase to 30-35 million tonnes a year in future. To meet this requirement, Gujarat needs to open new lignite mines.

The Minister said, "This is not only beneficial for industries but it will create new employment in Valia area once mining will start from there."