Due to its location and the distance from the various coalfields of the country, Gujarat is not getting adequate supply of coal for its industries. Also the landed cost of coal makes its use uneconomic for industrial use. Under such circumstances, lignite has contributed significantly towards the growth of industries and the power sector in Gujarat.

Lignite is consumed by industries, such as textile manufacture & processing, chemicals, roofing tiles, cement, bricks, power generation, etc. The Gujarat State Electricity Board has recently established & commissioned a lignite based 2X70 MW Thermal Power Station at Panandhro in Kutch district and is consuming about 1.2 MMT of lignite annually. Based on the success of this power plant, the State Government proposes to establish three more lignite based power stations of 250 MW each in Kutch, Surat and Bhavnagar and also to reserve the Panandhro and Akrimota Lignite deposits for power generation only. Under the circumstances, it has become necessary to develop other deposits in the state to meet the increasing lignite demand of other industries. In view of the above facts, Gujarat Mineral Development Corporation (GMDC) Limited, proposes to augment the lignite production in Kutch area of Gujarat by opening 3 new lignite mines for achieving an annual combined target of 8.5 MMT of lignite extraction (Waheed, et.al., 1990).

• Project Details