Coal news and updates

GMDC to add 6 new lignite mines by FY28

With the vision of significantly boosting our production capacity to meet the state’s future energy demands Gujarat Mineral Development Corporation will be launching six new lignite mines duirng 2025-26 (FY26) to 2027-28 (FY28) across Gujarat, according to a BSE filing. These mines will be at Lakhpat-Punrajpar, Ghala, Damlai, Valia, Panandhro Extension, and Bharkandam with a total reserve of 400 million tons (mt) and has a life span of maximum 30 years. The company has earmarked Rs 3,000 crore for lignite projects. “Once ramped up, our lignite and coal projects are expected to yield a cumulative output of more than 32 million tons per annum (mtpa). We view these expansions as a critical element of our overall vision to meet the energy needs of Gujarat state. Further solidifying our commitment, we have reached advanced stages of discussion with Gujarat Urja Vikas Nigam Limited (GUVNL), to set up a strategic partnership for the utilisation Odisha coal blocks to fuel thermal generation of 4,400 MW capacity and also explore the opportunity to add over 1,000 MW of thermal power capacity, fuelled by our upcoming lignite mines in Gujarat,” the company said in its annual report. GMDC is working towards operationalising six new lignite mines, which will expand its production capabilities, strengthen its market position, and contribute significantly to the goal of capturing the mine-to-market value chain. These new mines will increase Gujarat’s production capacity, reduce electricity costs, leverage the buoyancy in lignite prices, and better serve captive power plants and customers. The company aims to reach nearly 50 percent of the Gujarat market. To fast-track these new lignite mining projects, GMDC has engaged the globally reputed consultancy firm, Deloitte.