International BusinessGujarat reserves lignite, manganese areas
With a view to providing domestic fuel to the power projects run by the State PSUs, Gujarat government has resolved to reserve additional area having lignite resources for public sector companies of Gujarat government and for power generation joint venture with state utilities.
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The lignite reserves in the state are limited. As a result, the state government believes that it is inevitable to reserve the existing lignite for State PSUs or JV with state-run companies for power generation. "All additional lignite areas will be kept reserved for State PSUs and their JVs for power generation," said a recent circular by the industries and mines department, government of Gujarat.
The circular further makes it clear that those who use lignite for power generation will be given priority while granting mineral concessions.
Considering the necessity to make fuel available to small and medium scale industries, which generate employment in the state at large, the Gujarat government has decided that public sector mining major Gujarat Mineral Development Corporation (GMDC) will supply the surplus quantity of lignite from its mines to the industries in the state with priority to SME sector.
Gujarat government, through another circular, has reserved 1,153 hectares area having manganese reserves has been reserved for GMDC. In addition to this, the remaining area would be granted to the captive users willing to establish unit for producing value added products such as manganese sulphate, manganese oxide, ferro alloys. However, this would not apply for manganese beneficiation plant. Manganese has wide applications in manufacturing of steel, high batteries, dryers for paints, colouring agents in ceramics and glass, agriculture and textiles.
GMDC has been permitted to lift manganese ore from the dumps of Shivrajpur areas and dispose thes same, for which GMDC is entitled to retain 20 per cent of sale price. The remaining 80 per cent of the amount will be kept in a seperate account of the Gujarat Mineral Research and Development Society for the purpose of mineral survey and exploration through outsourcing. GMDC has also been allowed to set up plant or plants in joint venture for deriving maximum value of output per unit of manganese.