Strategic Business Unit & Profit Centre – Lignite
Lignite is the futuristic mineral which is expected
to give a fillip to company’s turnover and profits. The company has
its lignite mining operation at Giral in Barmer district and
Kasnau-Matasukh mines in Nagaur district of Rajasthan. The Giral mines in
Barmer district are already operational. The mining of lignite from
Matasukh and Kasnau mines had started but the huge inrush of water has
forced the company to stop the activities for a while.
The company has already established lignite fuel as
a substitute for coal in the thermal power stations. It has entered
into a Memorandum of Understanding with Rajasthan Vidyut Utpadan Nigam
Ltd in February 2003 for supply of lignite for their proposed 125 MW
Power Plant at Giral in Barmar district.
The Company has also appointed Registered
Authorised Sales Agents (RASA) as part of its advanced marketing
strategy for marketing of the output from Kasnau and Matasukh lignite
mines. Each RASA has a sales territory with annual sales target. The
agreement with them provides for sales incentives along with penal
provisions in case of their default.
