GHCL on September 23 announced that the company was declared the preferred bidder for the Kadaya limestone mineral block in Gujarat.

The e-auction for the block was completed on September 22, with GHCL emerging as the highest bidder for a composite licence covering an estimated 5.67 lakh tonnes of limestone reserves.

The Kadaya block is located in Junagadh district and covers an area of around 6.88 hectares. GHCL will now have to complete the required formalities, including submitting the performance security within 45 days, before the composite licence can be finalised. The company will also need to obtain the necessary regulatory and environmental approvals before mining operations can begin.

The development is important for GHCL because limestone is a key raw material used in soda ash manufacturing. The company already operates captive limestone mines across Gujarat, with combined annual production capacity of around 6.7 lakh tonnes. Its existing mines are spread across the Gir-Somnath and Junagadh districts.

The new block could further strengthen GHCL’s backward integration strategy by providing additional domestic access to limestone. Captive raw material availability can help reduce dependence on external supplies and limit the impact of fluctuations in raw material prices and transportation costs.

The latest development comes as GHCL expands its chemical and salt businesses. The company began commercial production of food-grade vacuum salt at its Sutrapada facility in Gujarat on August 31, 2026. The plant has an annual production capacity of 1.7 lakh tonnes.

GHCL is also progressing with its greenfield soda ash expansion in Gujarat. In August, the National Green Tribunal dismissed appeals challenging clearances related to the project, removing a legal hurdle for its planned expansion.

The Kadaya limestone block therefore adds another layer to GHCL’s strategy of securing key inputs for its chemical operations. 

While the preferred-bidder status does not immediately translate into mining production, completion of the licence process and subsequent approvals will be important milestones for the company.

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