Informist, Tuesday, Apr 12, 2022

By Sunil Raghu

AHMEDABAD – Gujarat Mineral Development Corp Ltd is planning to diversify its revenue stream with the aim to move away from being a pure-play lignite producer, Managing Director Roopwant Singh told Informist. 

The state-owned major owns lignite, bauxite, fluorspar, manganese, silica sand and limestone mines, but has over 85% of its revenues coming from lignite operations.

Going ahead, the company wants to reduce its dependence on lignite to 50% and ramp up the share of non-lignite operations, Singh said. 

Several consulting firms have been appointed to help the company chart out a roadmap for business opportunities in multiple areas, he added. 

Additionally, Gujarat Mineral plans to revive its fluorspar and metal mines this year. In Kutch, Gujarat, the company has 50 mln tn of bauxite reserves, and is looking at hiring an expert to help it with its beneficiation and trading. 

Further, the company plans to exploit its limestone reserves in Kutch, as cement majors such as Shree Cement Ltd, JSW Group, JK Lakshmi Cement and Adani Group have announced plans to set up cement plants in Gujarat. Limestone is used in the making of portland cement and clinker. 

Gujarat Mineral also wants to rope in a strategic partner this year for setting up a cement plant.

While these are long-term targets, the company will continue to focus on lignite in the near term in view of the strong demand.

It aims to raise its lignite output to 10 mln tn in 2022-23 (Apr-Mar) from the current 8 mln tn, and has drawn a capital outlay of 6.7 bln rupees for the same.

The company will also revamp some languishing lignite mines to ramp up production.

As part of the revamp plan, the company will invest in its 250-MW Akrimota thermal power plant near Kutch to produce power at a cheaper cost. 

Gujarat is currently facing a severe power crisis and paying more than 16-18 rupees per unit to buy power. 

Today, shares of the company ended 1.8% lower at 207.15 rupees on the National Stock Exchange.  End

Edited by Namrata Rao 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.