Rajasthan CM Bhajanlal Sharma has directed the immediate restart of Nagaur Lignite Mines, which were closed due to paperwork issues, to help Bhilwara's textile hub.
The textile processing industry of Bhilwara, a major textile hub in the country, is currently struggling with fuel shortages and skyrocketing prices. The decrease in fuel availability has led to a massive increase in production costs.
Due to rising costs, it had become challenging for Bhilwara's entrepreneurs to compete in global and domestic markets. Amidst this crisis, the closure of Nagaur mines proved to be a double blow.
The auction process for the lignite mines of Rajasthan State Mines and Minerals Limited (RSMM) in Nagaur had already been completed. However, work stopped due to delays in the renewal of administrative and environmental permissions.
If the necessary paperwork had been completed on time, this deadlock in mine operations would not have occurred. As soon as the mines closed, a shortage of local lignite was created in the market.
Bhilwara's textile industries mainly rely on domestic coal and lignite from Bikaner for energy. Currently, their prices have reached ₹8,500 to ₹12,000 per ton.
In contrast, the price of Nagaur lignite is estimated to be only ₹6,000 per ton. Due to the short distance between Nagaur and Bhilwara, there will also be significant savings in transportation costs.
The supply of coal imported from Indonesia has been badly affected due to global reasons. The shortage of coal in the international market had increased pressure on Bikaner's mines locally.
A delegation of Laghu Udyog Bharati made a special request to Chief Minister Bhajanlal Sharma through National Organization General Secretary Prakash Chandra. They apprised the CM of the actual situation.
Showing sensitivity in the interest of industries, the Chief Minister has directed to start Nagaur mines immediately. This has raised hopes of major relief for the struggling textile industry.
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