Deccan Gold Mines Limited has inaugurated the Jonnagiri Gold Project in Andhra Pradesh, marking the operational launch of India's first significant private-sector gold mine since Independence. Andhra Pradesh Chief Minister Shri N. Chandrababu Naidu formally opened the facility and laid the foundation stone for the next phase of plant expansion, signalling a new growth phase for domestic mining and resource security.

Project Overview and Operations

The Jonnagiri Gold Project currently processes approximately 1,000 tonnes of ore per day and is expected to produce 400-600 kilograms of gold annually. Upon completion of the planned expansion, the processing capacity is expected to increase to approximately 2,500 tonnes per day, with annual gold production exceeding one tonne. The project is located in Kurnool District, Andhra Pradesh, and represents a landmark step in India's private-sector mining landscape.

Strategic Significance

Dr. Hanuma Prasad Modali, Managing Director of Deccan Gold Mines Limited, highlighted the project's role in reducing India's dependence on gold imports, emphasising that responsible resource development at Jonnagiri unlocks long-term value for communities and the nation. In a further mark of recognition, Chief Minister Naidu announced the renaming of Jonnagiri village to "Swarnagiri" and extended support for future expansion initiatives aimed at driving economic growth in the Kurnool district.

Deccan Gold Mines Limited has secured a loan of ₹3 crore from Modali Consultants LLP to fund the development of its project. The debt funding carries an interest rate of 12% per annum, compounded quarterly, with a tenure of 12 months. The transaction is not a related party transaction and was conducted at arm's length.

The loan is secured by the pledge of 18,750 equity shares held by the borrower in Geomysore Services (India) Private Limited. The documentation for the loan was completed on June 23, 2026. The disclosure was made to BSE Limited under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Loan Details

The company confirmed that there is no shareholding in Modali Consultants LLP and that the lender is not related to the promoter or promoter group. The interest is payable at the end of the tenure.