GMDC weighs options for 26% stake in 14 projects

State owned Gujarat Mineral Development Corporation (GMDC) is weighing options to pick up stakes in various projects slated to take place in Gujarat. The mining major is eying 26 per cent stake each in 14 different projects to be set up by leading companies.

GMDC signed mamorandums of understanding (MoUs)) with total 14 companies during the Vibrant Gujarat Global Investors' Summit-2009 held in January. The company, as one of the partners, has kept the option open for taking 26 per cent stake in these projects.

"GMDC is looking at taking 26 per cent stake in each of these projects. The company will get stake in the project for supplying raw material to these projects and no cash fund will be infused by the company in the 14 ventures", said senior government official.

Raw materials such as bauxite, silica sand, fluorspar and limestone will be supplied by GMDC, which has inked agreements with various corporates for projects involving a whopping investment of Rs. 8,733 crore.

The projects, for which GMDC is eying stakes, include integrated coke oven plants by Mumbai-based Hindustan-Dorr Oliver Ltd, Saurashtra Fuels (P) Ltd, Rachna Global LDA of Mozambique, BLA Coke Pvt Ltd and Sunflag Iron & Steel Co ltd. These companies will invest Rs. 1,500 crore each for their respective coke oven plants.

GMDC is also looking at having stakes in coal washery projects. Adani Enterprise Ltd, Aryan Coal Benefication intend to infuse Rs. 60 crore each for setting up coal washeries in Gujarat and GMDC will supply raw material for the projects.