GHCL receives approval from Gujarat govt for renewal of lease for its lignite mine.

GHCL Ltd., a prominent soda ash manufacturer, announced recently that it has received approval from the Gujarat government's industries and mines department for the renewal of the lease for its Khadsaliya lignite mines. This crucial approval secures the supply of lignite for the company's captive power plant in Gujarat.

The renewed lease for the Khadsaliya lignite reserve, located in Bhavnagar district and spread over 171 hectares, is valid for a period of 20 years, extending until December 2043. The opencast mining block, situated approximately 260 kilometers from GHCL's captive power plant at Sutrapada, was initially leased in October 2002.

GHCL also highlighted its strategic ₹950 crore Memorandum of Understanding (MoU) with the Government of Gujarat, signed in December 2023. This MoU focuses on the development and commercial sale of secondary minerals, specifically Bentonite and Sand.

"As a result, the Khadsaliya Mining Project will now evolve into a composite mining operation, encompassing both primary Lignite mining and secondary mineral projects," the company stated in a regulatory filing. "This expansion represents a transformative opportunity for the region and aligns with our sustainability goals, circular economy principles, and commitment to resource optimisation."