Gujarat Mineral Development Corporation to strengthen its Lignite Production

– Supporting the MSME ecosystem in the State

AHMEDABAD, India, Aug. 19, 2022 /PRNewswire/Gujarat Mineral Development Corporation (GMDC), a leading mining PSU enterprise and the largest lignite seller in the country, is inviting bids for its Surkha (N) Lignite Mine in Bhavnagar from Lignite Mining contractors to fuel further progress. 

The company plans to strengthen its lignite production to support micro, small and medium enterprises (MSMEs) looking for cheaper fuel. It produced 8.5 million tonnes of lignite last year and planned to reach 10.0 million tonnes this year. Over the previous six months, it has added 400 more customers daily.

Mr. Roopwant Singh, IAS, 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 shortlyThis will help us minimising the constantly increasing demand-supply gap and catering the energy requirements in the state.

The RFP for Lignite Mining at Surkha (N), Bhavnagar, includes two packages with a tenure of six years each for the following Works:

  • Overburden/ inter burden removal, Excavation and/or 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 estimated quantity of lignite to be extracted under this project will be more than 200 Lakh MT. The tender is currently available on the website of GMDC (

Lignite, generally yellow to dark brown, is regarded as brown coal and is a major source of producing power. It mines Lignite from Tadkeshwar, Surkha (North), Amod (G-19 Extension), Mata No Madh and Umarsar, located in Surat, Bhavnagar, Bharuch and Kutch regions, respectively. GMDC has helped expand Lignite-mining operations in the state.

GMDC has an important mandate to develop the major mineral resources of the state. From its challenging beginnings involving the crushing and screening of silica sand required by the glass industry, GMDC is today acknowledged as one of India’s premier mining organisations.

About Gujarat Mineral Development Corporation Limited 

Gujarat Mineral Development Corporation Limited (BSE: 532181) (NSE:GMDCLTD) is one of the leading mining player in India. It is a State Public Undertaking of the Government of Gujarat. The state-owned company currently has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region. It is purportedly the largest merchant seller of lignite in the country.



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