Surat: Industrial bodies in south Gujarat raised concerns about acute lignite shortage and sharp price hike during a meeting with Gujarat Mineral Development Corporation (GMDC) officials at the Southern Gujarat Chamber of Commerce and Industry on Friday.The joint meeting, convened by the chamber and the South Gujarat Textile Processors Association, was held with GMDC officials to discuss disruption in lignite supply to processing houses and other manufacturing units across the region.Industry representatives highlighted an escalation in GMDC lignite coal prices in May, June and July 2026, stating that the increased fuel cost directly impacted production expenses in energy-intensive units. They urged the corporation to review and roll back the recent hike in the larger interest of industrial stability.A second key issue raised was irregular supply against sanctioned allocations. Participants said several units were not receiving their allotted quota on time, creating uncertainty in production planning and forcing some buyers to rely on costlier alternatives.The third concern was related to logistics. Entrepreneurs said that, instead of receiving lignite from the closer Tadkeshwar mine, supplies were increasingly being routed from the Bhavnagar site, substantially increasing transportation and handling costs for Surat-based industries.Industry leaders also pointed towards shortage conditions in the open market, alleging that supply constraints were being exploited through unauthorised activity and artificial scarcity, further pushing up prices.SGCCI president Ashok Jirawala appealed to GMDC to adopt a more sensitive approach and take decisions which address “legitimate” industry demands, given wider economic pressures.GMDC officials attributed supply disruption to a rise in industrial diesel prices and flooding caused by early rains at the Tadkeshwar mining area, which affected production and movement. They assured the associations that the issues would be taken up at appropriate state and central levels to work towards timely resolution on pricing and supply.
