GMDC to begin mining in Surkha

Gujarat State Mineral Development Corporation (GMDC) is all set to launch mining operations for its 250 mw lignite-based power project in Bhavnagar by mid-October.

C J Jose, chairman and managing director, GMDC, said the corporation had secured the leasing and mining rights for the southern portion of the Surkha mines near Bhavnagar in the Saurashtra region.

He added that the leasing rights for the northern part of the Surkha mines are with Gujarat State Power Corporation, which would hold 50 per cent equity stake in the proposed power plant.

GMDC would have 26 per cent stake in the power plant, while Gujarat Urja Vikas Nigam Limited, the erstwhile state electricity board, would pick up the remaining 24 per cent. The power plant is expected to go on-stream within 30 months after the mining operations begin, Jose said.

GMDC would cater to the increasing demand for lignite from steel foundries in and around Bhavnagar until the power plant begins operation.

Alang, the largest shipbreaking yard in Asia, and other steel units in the region have been sourcing lignite from GMDC's mines in the Kutch region. Lignite from GMDC's Surkha mines will cut transportation costs for the steel units in the region.

The Surkha mines, spread over 5,000 hactare, have 130 mt of lignite deposits, divided equally between the northern and southern parts.

GMDC has carried out a feasibility study on its power plant and is expected to start work on the project immediately after commencing mining operations.