Governor of Gujarat-Backed Industrial Minerals Company Signs Long-Term Supply Agreement with City Gold Pipes Pvt Ltd for Limestone from Kutch’s Lakhpat Punrajpur Mine
The stock is up by 36 per cent from its 52-week low of Rs 226.20 per share and has given multibagger returns of over 700 per cent in 5 years.
Gujarat Mineral Development Corporation Limited (GMDC) has signed a long-term supply agreement with City Gold Pipes Pvt Ltd, a consortium, for 150 million tons of limestone over 40 years from its upcoming Lakhpat Punrajpur Mine in Kutch. The agreement, formalised by representatives of both organisations in Ahmedabad, Gujarat,, marks a strategic partnership to monetise GMDC's limestone asset. This collaboration will support City Gold Pipes Pvt Ltd in establishing a large-scale integrated cement plant, fostering industrial growth in the region.
This initiative is expected to stimulate investment, enhance industrial development in Kutch, and generate thousands of direct and indirect employment opportunities, significantly contributing to the socio-economic progress of Gujarat. Kutch's coastal location offers improved market access and cost-efficient logistics, making it an ideal hub for cement production.
Furthermore, this agreement will contribute substantially to the State Exchequer through revenue generation from royalties, NMET and DMF contributions, and GST on both limestone and cement production. This underscores GMDC Ltd.’s commitment to fostering industrial growth while ensuring sustainable resource utilisation, strengthening Gujarat’s position as a leading industrial and economic state.
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About Gujarat Mineral Development Corporation Limited
GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. The company is engaged in mining lignite from deposit-rich areas across the state. The company markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.
The company has a market cap of over Rs 9,000 crore and 74 per cent is owned by the Governor of Gujarat. The stock is up by 36 per cent from its 52-week low of Rs 226.20 per share and has given multibagger returns of over 700 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.