GHCL Ltd., a leading soda ash manufacturer, received renewal approval from the industries and mines department of the Gujarat government for its Khadsaliya lignite mine lease. The critical approval ensures a steady supply of lignite for the company’s captive power plant in Sutrapada, Gujarat.
20-Year Lease Extension Strengthens Energy Security
The Khadsaliya lignite reserve, located in Bhavnagar district and covering 171 hectares, has been granted a 20-year lease renewal, valid until December 2043. This opencast mining block, situated approximately 260 kilometers from GHCL’s captive power facility, was first leased in October 2002.
Strategic MoU Boosts Mining Operations
GHCL underscored its ₹950 crore Memorandum of Understanding (MoU) with the government of Gujarat, signed in December 2023, aimed at the development and commercial sale of secondary minerals, including bentonite and sand.
Transitioning Toward Composite Mining
Newsonprojects.com reports that with this approval, GHCL will evolve the Khadsaliya mining project into a composite operation, integrating primary lignite extraction with secondary mineral projects. “This expansion represents a transformative opportunity for the region and aligns with our sustainability goals, circular economy principles, and commitment to resource optimisation,” GHCL stated.
