Gujarat Mineral Development Corporation Limited (GMDC) has invited bids from mining contractors for company's Surkha (North) lignite mines in Bhavnagar district of Gujarat.

The company has estimated the quantity of lignite to be extracted under the project at over 200 lakh tonnes. The tender is currently available on the company’s website, it said in a statement issued on Thursday.

GMDC is adding new customers from the small and medium industries segment for its lignite. Roopwant Singh, Managing Director, GMDC, said, "Our customer base among MSMEs in textiles, chemicals, and ceramics along with captive power plants is increasing. Hence, we are increasing our lignite production this year by an additional 1.5 million tonnes even as we look to add more mines shortly. This will help us minimising the constantly increasing demand-supply gap, and catering the energy requirements in the state."

Pack of two

The request for proposal for lignite mining in Bhavnagar includes two packages with a tenure of six years each for overburden removal, excavation and loading of lignite from the mine face and ancillary activities.

Transporting and unloading raw lignite, beneficiated lignite and pyrites/rejects, and other ancillary activities, loading of processed lignite, bentonite, and pyrites/rejects through the deployment of excavator/loader and other ancillary activities, the statement said.

By exploring new mines, GMDC plans to strengthen its lignite production to support micro, small and medium enterprises (MSMEs) with a cheaper fuel. Lignite, generally yellow to dark brown, is regarded as brown coal and is a major source of producing power.

GMDC produced 8.5 million tonnes of lignite last year, and it plans to reach 10 million tonnes this year. Over the previous six months, it has added 400 customers everyday, it said.

GMDC mines lignite from Tadkeshwar, Surkha (North), Amod (Extension), Mata No Madh and Umarsar, located in Surat, Bhavnagar, Bharuch and Kutch regions, respectively.

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