Gujarat Mineral to ramp up share of non-lignite operations

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


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


Other News

TREND: Jul CD supply down 28% on month on high base; CD, CP rates up

Informist, Wednesday, Aug 10, 2022 By Vishal Sangani MUMBAI – Borrowing by banks through certificates of deposit in July fell 27.5% from the previous month that had seen heavy issuances because of the quarter-end rush for funds, dealers said. Banks raised 512.40 bln rupees through short-term debt last month, as against 57.20 bln in July 2021. State-owned banks were the […]

India Sugar: Flat across all markets, hits nearly 2-week high on ICE

Informist, Wednesday, Aug 10, 2022 By Puja Das NEW DELHI – Ex-mill prices of sugar were flat in all key wholesale markets of India today because of parity between demand and sales, said Delhi-based trader Naresh Gupta. * Demand is unlikely to improve as markets across north India will be shut till Monday on account of Raksha Bandhan and Independence Day, Gupta […]

Informist Poll: IIP growth seen slowing to 10.5% Jun from 19.6% May

Informist, Wednesday, Aug 10, 2022 By Aditya Saroha NEW DELHI – Industrial growth in India is expected to have slowed to 10.5% in June from 19.6% a month ago, according to a poll of 25 economists by Informist, as a favourable base effect has started to fade away. India was grappling with the second wave of COVID-19 in the initial months of last year, […]