Surat Industries Seek Rollback of Lignite Price Hike Amid Supply Crisis

SURAT : Surat’s textile processing and manufacturing industries have raised serious concerns over steep lignite price hikes and persistent supply shortages, warning that the dual burden is pushing up production costs at a time when businesses are already grappling with global economic uncertainties. Industry representatives have urged Gujarat Mineral Development Corporation (GMDC) to immediately review its pricing policy and restore regular supply from the Tadkeshwar mine to ease the mounting pressure on manufacturers.

The concerns were voiced during a joint meeting organised by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) and the South Gujarat Textile Processors Association (SGTPA) at SGCCI’s Sarsana premises. The meeting was attended by Neeraj Patel, General Manager (Sales and Marketing – Coal), GMDC, along with senior representatives from Surat’s textile and manufacturing sectors.

Industrialists highlighted four key issues affecting businesses. They demanded the withdrawal of the “unusual” increase in lignite prices implemented during May, June and July 2026, stating that the hikes have significantly increased operational expenses. They also pointed out that industries are not receiving even their officially allotted quota of lignite on time, resulting in disruptions to production schedules.

Another major concern raised was the growing transportation cost. With supplies increasingly being sourced from GMDC’s Bhavnagar operations instead of the nearby Tadkeshwar mine, manufacturers are facing substantially higher logistics expenses. Representatives also alleged that supply shortages have encouraged artificial scarcity and unauthorised activities in the open market, further worsening the situation.

SGCCI President Ashok Jirawala appealed to GMDC to adopt a more industry-friendly approach while addressing the crisis.

“During previous economic challenges, industries received policy support from the government. As a state-owned organisation, GMDC should also ensure price stability and extend relief to industries facing extraordinary circumstances,” he said.

Responding to the industry’s concerns, GMDC officials explained that the sharp rise in industrial diesel prices and early monsoon rains had severely affected mining operations at the Tadkeshwar lignite mine. Waterlogging at the mine disrupted production and transportation, forcing the corporation to increase supplies from Bhavnagar, which also contributed to higher operational costs.

Despite the challenges, GMDC assured industry representatives that all concerns would be examined seriously.

Officials said the issues related to pricing, supply and logistics would be taken up with the appropriate authorities and that efforts would be made to find a balanced and practical solution at the earliest.

The meeting was attended by SGTPA President Jitendra Vakharia, industrialists J. P. Agarwal and Vinod Agarwal, Chamber Honorary Treasurer Atul Patel, Managing Committee members, GIDC Committee Chairman Mitul Mehta, and senior SGTPA office-bearer Binay Agarwal.