State-owned Gujarat Mineral Development Corporation Ltd (GMDC) on Thursday said its board has approved a capital expenditure of Rs 3,041 crore for the next fiscal. The PSU had set a capex target of Rs 800 crore for the ongoing financial year.

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"GMDC is proud to announce the Board's approval of a Rs 3,041 crore capital outlay for the fiscal year 2025, reinforcing our commitment to substantial growth and sustainable development in the mineral sector," it said in a regulatory filing. With a strategic allocation of Rs 1,138 crore towards new lignite projects, this investment will catalyse the enhancement of its existing lignite projects while also promoting the development of new ventures. "GMDC dedicates Rs 629 crore to expedite the operationalisation of the allotted coal blocks in Odisha," it said.

Recognising the role of critical minerals in the global economy, the company has set aside Rs 462 crore for the expansion and modernisation of its metal projects. "This initiative is particularly focused on the extraction and processing of rare earth elements, vital for high-technology industries and national security applications," it said. GMDC is one of the leading mining players in India. It is a State Public Undertaking of the Gujarat government. It currently has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region.