Gujarat Mineral Development Corporation (GMDC) rallied 3.80% to Rs 416.55 after the company's board approved Rs 3,041 crore capital outlay for the fiscal year 2025 for substantial growth and sustainable development in the mineral sector.
With a strategic allocation, the company has allocated Rs 1,138 crore towards new lignite projects, the company reinforces its commitment to the cornerstone of its mining operations. This investment will catalyze the enhancement of its existing lignite projects while also facilitating the development of new ventures, thereby ensuring continued leadership in the sector.The company dedicates Rs 629 crore to expedite the operationalization of the allotted coal blocks in Odisha. This initiative is pivotal in its strategy to harness the potential of early mine development, thereby contributing to the region's industrial prosperity and the nation's energy security.
Recognizing the critical role of minerals in the global economy, the company has earmarked Rs 462 cr for the expansion and modernization of its metal projects. This initiative is particularly focused on the extraction and processing of rare earth elements, vital for high-technology industries and national security applications.
The company is strategically investing Rs 371 crore into the development of power projects, with a significant emphasis on renewable energy, signaling a forward-thinking approach aimed at fostering a sustainable and environmentally responsible energy landscape.
Of this investment, the company over 300 crore is allocated for the comprehensive overhaul of the ATPS (Akrimota Thermal Power Station), a deliberate move to make a slant towards ending the financial losses associated with thermal power generation. This initiative is not only focused on enhancing the efficiency and sustainability of thermal operations but is also intricately coupled with a careful management of capex allowance, reflecting a balanced approach to capital expenditure.
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Concurrently, there are efforts underway to revise Power Purchase Agreements (PPAs) by authorities, a process that complements companys strategic pivot. These concerted actions not only aim to enhance the efficiency and sustainability of thermal operations but also signify firms commitment to aligning its energy portfolio with the broader goals of energy security, environmental stewardship, and financial viability, thereby ensuring a more resilient and forward-looking energy sector.
Shri Roopwant Singh, IAS, managing director, GMDC, said, "Our approved capital outlay for the next five years is a testament to GMDC's robust financial health and our optimistic outlook towards the future. These investments are pivotal in our journey towards achieving long-term growth, operational excellence, and sustainability. We are confident that this strategic capital allocation will create substantial value for our stakeholders.
Gujarat Mineral Development Corporation Its product range includes essential energy minerals like lignite, base metals and industrial minerals like bauxite and fluorspar.
The companys standalone net profit declined 55.61% to Rs 117.47 crore as on Q3 FY24 as compared to Rs 265.10 crore recorded in Q3 FY23. Revenue from operations fell 34.03% to Rs 564.27 crore in Q3 FY24 as against Rs 855.41 crore recorded in corresponding quarter last year.
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