GMDC buys 500 hectare in Surat for lignite mining

Initial work on the proposed Tadkeshwar mine is expected to begin after the monsoon, while full fledged mining will commence by December.

While the move is expected to ensure that GMDC maintains its lignite production which declined because of decreasing output of the Rajpardi mine, the extra cost of transportation will also be saved by industrialists of south Gujarat.

At present, lignite buyers from south Gujarat have to pay for transportation costs from Kutch to south Gujarat.

GMDC aims to target powerloom units in and around Surat by commencing lignite mining in the Surat district.

According to GMDC officials, while it is still not clear as to how much volume of lignite will be mined from Tadkeshwar annually, the mine is expected to provide over 3.50 lakh tonne of lignite per annum.

Until recently, GMDC, a Gujarat government enterprise, was excavating 3.50 lakh tonne of lignite from the Rajpardi mine every year.

"We expect to start excavation work at Tadkeshwar immediately after the monsoon as we have completed the task of acquiring land last week.

Mining of lignite will begin within three months after work begins," said an GMDC official.

The official added that once the Tadkeshwar mine starts functioning, the company's annual lignite output will be maintained at 55 lakh metric tonne or more.

According to figures of the Gujarat Industrial Development Board (GIDB), the lignite output at the Rajpardi mine fell by 28 per cent over the past one year.

In March 2002 the lignite output at Rajpardi was 64,000 tonne, and this has fallen to 45,950 tonne in March this year.

A GMDC official spokesperson, while admitting that lignite production had fallen in Rajpardi, stated that there has been a constant increase in the overall lignite production over the past three years.

The official said that in 2000-01 it was at 45.65 lakh metric tonne (lmt), 48.49 lmt in 2001-02 and at 55.03 lmt in the past fiscal.

GMDC owns the rights to more than 80 per cent of the state's lignite reserves "" approximately 62 million tonne of lignite spread over 2,366 hectares.

The Kutch district is rich in lignite with an estimated reserve of 300 million tonne. GMDC's lignite output is marketed throughout the country. The company is India's largest merchant seller of lignite.

GMDC registered a 28 per cent rise in profit in 2002-03 and posted sales of Rs 292.75 crore.