Ahmedabad: The State-run Gujarat Mineral Development Corporation (GMDC) Limited has emerged as the highest bidder for two coal mines in Odisha, the company informed Monday.
At the recently-concluded commercial coal block auction by the Union Ministry of Coal, the State PSU won the bids for Odisha’s Burapahar Block in Sundargarh District, which has a geological reserve of 548 million tonnes (mt), and the Baitarani (West) Block in Angul District, which has a geological reserve of 1152 mt.
This is seen as a significant achievement for the country’s largest lignite seller, as it expands its presence in the coal mining sector, thereby contributing to meet the energy requirements of the country.
Also read: GMDC Q1 net rises 141% on jump in mining revenues
Roopwant Singh, Managing Director, GMDC, said, “We are delighted to have won two blocks in Odisha during the recent commercial coal block auction. We are committed to utilising our resources and expertise to develop these blocks to their fullest potential while ensuring the highest standards of safety and environmental sustainability.”
This expansion helps GMDC go beyond the geographical boundaries of Gujarat and helps with future planning opportunities for the development of the power sector and building energy requirements for the country.
Notably, in the February analyst call, the management informed about its aggressive approach to execute and commercialise the coal mining projects.
Singh had said, “If we win, we will be taking these projects very aggressively. In a very time-bound manner, because significant security will be at stake and any failure or delay, we will treat it as a reputational loss. So you should expect swift movement if you’re successful in the coal mines auction.”
Also read: GMDC to invest ₹670 cr across new mines, beneficiation plants
GMDC shares ended in red at Rs 140, down 1.7 per cent on BSE Monday.
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