GMDC Signs 40-Year Limestone Supply Agreement with City Gold Pipes

Gujarat Mineral Development Corporation Ltd. (GMDC) has entered into a long-term supply agreement with City Gold Pipes Pvt. Ltd. for the supply of 150 million tonnes of limestone. The duration of the agreement is 40 years. The limestone will be supplied from GMDC’s upcoming Lakhpat Punrajpur Mine, located in Lakhpat Taluka, Kutch District, Gujarat.

As of 12:18 PM on May 7, 2025, shares of Gujarat Mineral Development Corporation share price were trading at ₹301.30, up ₹5.20 (1.76%) for the day, but down 18.24% over the past six months and 6.95% year to date.

Parties Involved

City Gold Pipes is a consortium formed by Goldcrest Cement Private Limited and Kailash Darshan Housing Development (Gujarat) Private Limited. The agreement was formalised on May 6, 2025, in the presence of Roopwant Singh, IAS, Managing Director of GMDC, and Sanjay Chimanlal Agrawal, the authorised representative of City Gold Pipes.

Purpose of the Agreement

The limestone supply will support the setting up of a greenfield integrated cement plant by City Gold Pipes. The planned plant is expected to be a large-capacity facility located in Kutch. The region’s logistics advantages, including proximity to the coast, are expected to facilitate transportation and market access.

Employment and Industrial Impact

According to the official statement, the collaboration is to result in both direct and indirect employment in the region. The scale of the project is likely to drive industrial activity in Kutch and contribute to economic activity within Gujarat.

Read more: Star Cement Secures Boro Hundong Limestone Block in Assam; Shares Surge 3%

Revenue and Compliance Contributions

The limestone supply will generate income for the state through multiple channels. These include Royalty payments, contributions to the National Mineral Exploration Trust (NMET), District Mineral Foundation (DMF) funds, and applicable Goods and Services Tax (GST) on both limestone supply and cement production.

Company Background

GMDC is a government enterprise under the Gujarat government and is currently India’s second-largest lignite producer. The company is involved in the development and supply of various mineral resources across the state.

Conclusion

The agreement establishes a long-term supply arrangement for limestone between GMDC and City Gold Pipes, tied to a planned cement manufacturing facility in Kutch, with expected employment and revenue implications over the coming decades.

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