GMDC Begins First-Ever Monsoon Lignite Supply To Surat Textile Mills

For the first time, the Gujarat Mineral Development Corporation (GMDC) has begun supplying lignite to 400 textile mills in Surat during the monsoon season. Previously, GMDC’s lignite mines would shut down during the monsoon, forcing mills to import lignite from abroad, primarily Indonesia, at prices two to three times higher than domestic rates.

Jitendar Vakhariya, President of the South Gujarat Textile Processors’ Association, raised this issue with the Chief Minister and GMDC’s Managing Director. In response, GMDC has initiated the supply of lignite to Surat’s textile cluster during June, July, and August to stabilize prices and prevent seasonal hikes.

Typically, the price of lignite ranges from Rs 4,500 to Rs 8,000 per metric tonne outside the monsoon season. During the monsoon, prices soar to Rs 8,000 to Rs 12,000 due to increased production costs. To address this, GMDC pre-mined 3.21 lakh tonnes of lignite from the Tadkeshwar mine ahead of the monsoon. Additionally, the road connecting Tadkeshwar to Surat has been improved to reduce truck waiting times.

Last year, GMDC resumed operations at the Tadkeshwar mine, which has an estimated seven years of operational life remaining. Mining was previously halted for three years due to landslides and soil stability issues. In February 2022, GMDC received clearance from the Union Environment Ministry to mine lignite up to 135 meters, up from the previously permitted depth of 94 meters.