Lignite sale ban threatens Morbi roof tile industry

The ban on commercial sale of lignite from Pandhro mines in Kutch by the state government has sounded the death bell for the roof tile industry at Morbi in Rajkot district. The sudden ban has left this cluster of over 110 units in the lurch without raw material just ahead of its peak season before a quarterly closure during monsoon.

As lignite is not available since Monday, only 20 per cent of the units have been functioning currently. They are also likely to continue functioning only for one more week.

With no alternative, the industry that employs nearly 10,000 workers is about to face a shutdown, as the tunnel kiln on which tiles are baked runs only on lignite. Ceramic and cement industries at Kutch are also facing similar difficulties. In Kutch, nearly 75 units have been affected.

“The move has come at a crucial time. Before the monsoon closure, this is the peak season for the industry. Each of 110 units on an average must be producing roof tiles worth Rs 20-25 lakh during this period,” said Morbi Roof Tiles Association president Jayantibhai Patel.

The cluster, with an annual turnover of Rs 30 crore, needs 2,000 tonnes of lignite per day to fuel kiln that runs non-stop for 24 hours. The production cost goes up if kiln is stopped in between and it takes nearly two days to again heat it up completely.

“The supply was stopped without any intimation. Our orders were taken till Sunday. We are running out of lignite,” he said, adding: “The lignite coming from Matana Madh is of extremely poor quality.”

He further said there are little infrastructure facilities in place to get lignite from these two sites. “It's not possible to set transportation facility from the new sites so soon,” he said. The association has already submitted a memorandum in this regard to the Mamlatdar.

The ban was imposed following a visit by State Industry minister Saurabh Patel to Pandhro.

This was done to keep the fast-diminishing reserves for the lignite-based power plants run by the Gujarat Mineral Development Corporation (GMDC) at Akri village and Kutch Lignite Thermal Power Station.

At present, 10 tonnes lignite from Pandhro mines are available at Rs 1,100. Pandhro lignite is the best option both cost and quality wise. According to reports, lignite from Rajpardi costs almost double than the Pandhro lignite.

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