Gujarat Mineral Development Corporation (GMDC) has, for the first time, started supplying lignite to 400 textile mills during the monsoon season.

GMDC’s lignite mines used to remain shut during the monsoon, which typically led the mills to import lignite from abroad, mainly from Indonesia. Local importers would charge two to three times the price for such lignite.

Jitendar Vakhariya, President of the South Gujarat Textile Processors’ Association, had made representations to the Chief Minister and Managing Director of GMDC regarding this issue. In response, GMDC has initiated lignite supply to 400 mills in the Surat-based textile cluster during the monsoon season for the first time. To prevent price hikes during the monsoon, GMDC will supply already mined lignite in June, July, and August.

Typically, outside the monsoon season, one metric tonne of lignite is priced between ₹4,500 and ₹8,000, whereas during the monsoon, prices escalate to between ₹8,000 and ₹12,000 due to increased production costs. Responding to the representation from 400 dyeing processing mills based in Surat city and district, GMDC mined 3.21 lakh tonnes of lignite ahead of the monsoon from the Tadkeshwar mine. Additionally, the road connecting Tadkeshwar to Surat has been improved to eliminate long waiting times for trucks.

GMDC last year restarted operations at the mine which is estimated to have a life of seven more years. The mining was halted here for three years due to landsliding and stability (of the soil).  In February 2022, GMDC received clearance from the Union Environment Ministry to mine lignite up to 135 meters from the earlier permitted depth of 94 meters at Tadkeshwar.