Gaurav Raghuvanshi

Ahmedabad , Aug. 5

GUJARAT Minerals Development Corporation Ltd (GMDC), which has reported 20 per cent drop in net profit despite higher sales for the first quarter, has lined up plans to invest Rs 2,000 crore in the next couple of years.

"In the last six months, we have been able to improve the performance of our existing businesses. The first unit of the 250 MW pithead lignite power plant in Kutch district will go on stream in the next couple of days while the entire plant will be fully operational in a couple of months," the GMDC Chairperson, Ms Sudha Anchlia, told Business Line.

The company has reported 20 per cent drop in first-quarter net profit at Rs 23.82 crore compared to Rs 29.73 crore last year.

In the same period, sales turnover rose 42 per cent from Rs 81.51 crore to Rs 115.42 crore.

The net profit declined on account of depreciation of the Rs 1,400-crore power plant, Ms Anchlia said, adding that the effects of the new facility would be felt from the current quarter.

GMDC is also set to begin work on the expansion project at the Akrimota Power Station in Kutch.

"We have enough lignite reserves and expect the 250-MW expansion project to achieve financial closure soon. We have already started negotiations with financial institutions, including Power Finance Corporation, which financed the first phase of the power plant."

The company has identified new projects, including an 80,000-tonne refractory manufacturing unit in Kutch and a multi-metal project at Ambaji in North Gujarat in collaboration with Binani Zinc Ltd.

The joint venture will produce metals such as zinc, lead and copper.

GMDC is also working on a project to manufacture electrolytic manganese dioxide using an old mine at Shivrajpur in Vadodara and Zeolite in Kutch.

The company has already signed an MoU with a private company and is now working on the quantum of investment to be split up between the two partners, she said.

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