Kutch has the largest deposits of limestone in Gujarat with 67 percent of the total proved reserves. The deposits in Kutch are of three different geological ages and are concentrated in Abdasa and Lakhpat talukas. Shear deposits of limestone are also estimated in the talukas of Bhuj and Nakhatrana.

The quality of limestone (CaO=49.06%, MgO=2.10%, SiO2=4.06%, P2O5=3.75%) available in Kutch is cement grade.

Gujarat is a major limestone producing state in India and contributes 11 percent of India’s total. Though, Kutch possess the largest limestone reserves in Gujarat, but Amreli and Junagad are the major producers of limestone due to location of the cement plants of Siddhi, Gujarat Ambuja, L & T, etc. Limestone production in Kutch saw a significant increase after 2000, due to establishment of a cement plant by Sanghi Industries Ltd. in Abdasa, in proximity to the reserves and cement plant of J.P. Cement (recently taken over by Ultra Tech) near the village Vayor at Abdasa. This led to increase in limestone production in the region to a slightly higher than 4 percent share of Gujarat’s total in the year 2002.

Limestone along with silica sand and china clay which forms important ingredients for cement and ceramic industry are all produced in Kutch and combined production of these minerals has grown at an average 15 percent per annum during 1995 to 2002.

Limestone is consumed by a large number of industries such as cement, chemical, fertilizers, aluminium, steel, ferro alloys, foundry, glass, paper, sugar, etc. 90 percent of limestone is consumed by cement industry. The average production of limestone per annum stands at about 13.89 million tonnes in Gujarat. Along with growth in construction industry, demand for cement is constantly increasing both in the domestic as well as in the international markets. The cement industry in India comprises of 125 large cement plants with an installed capacity of 148.28 million tonnes and of more than 300 mini cement plants with an estimated capacity of 11.10 million tonnes per annum. The total installed capacity in the country as a whole is 159.38 million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02, registering a growth rate of 8.84%.

Presently, there are 8 major cement plants in Gujarat, out of which only two, (Sanghi Cement and J.P. Cement) are located in Kutch. Although, Kutch has the largest reserves of limestone in the state but maximum utilization of limestone is in Amreli district by five major private players. Most of these cement plants are located near the ports for exports to other countries.

Gujarat is the third largest consumer and sixth largest producer of cement in the country. Consumption of cement is highest in the western zone of India with more than 30 percent of the total consumption. The total production of cement in the state was 12.2 million tonnes in 2003-04 with 67 percent capacity utilization.

Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of cement from India during 2001-02 and 2003- 04 was 5.14 million tonnes and 6.92 million tones respectively. Ports of Gujarat exported 1.2 million tonnes of cement and 2.2 million tonnes of cement clinker. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd. Looking at the growth rate of cement manufacturing industry and increasing demand, it can be easily internalize that Kutch with its massive reserves possesses great potential of development of cement industry. It has the largest limestone reserves (2042.74 million tones as per statistics of Government of Gujarat, Geology and mining Department of Gujarat) and infrastructure in the region is also being developed most recently.