The Gypsum Development Authority was set up in 1950 with the objective of departmental exploration, excavation and mining of gypsum to feed Fertilizers Factories which was producing Ammonium Sulphate taking gypsum as a basic raw material. In 1952, after formation of Sindri Fertilizers and Chemicals Limited (SFCL), Gypsum Development Authority was merged with SFCL as its unit. In 1961, two companies viz Sindri Fertilizers and Chemicals Limited and Hindustan Chemicals and Fertilizers Limited were merged into a new company Fertilizers Corporation of India and this Gypsum Development Authority was named as Jodhpur Mining Organization which became a unit of the then Fertilizers Corporation of India since 1961.

With the change in the process in Sindri Rationalization scheme and reduction in the requirement of Gypsum at Sindri, The Jodhpur Mining Organization diversified its activities and developed a market from 1979 onwards in the State of Punjab, Haryana and U.P. for reclamation of sodic land.

Thereafter, Jodhpur Mining Organization was separated from Fertilizers Corporation of India and was formed as a new company FCI Aravali Gypsum & Minerals India limited (FAGMIL) in 2003 as a fully-owned Government of India (C) Schedule Company under the administrative control of Department of Fertilizer, Ministry of Chemicals & Fertilizers with an authorized capital of Rs. 10 crores and with a paid-up capital of Rs. 7.33 crores. Presently the authorised & paid up capital of the company as per 30 Crore.

After demerger FAGMIL continued its operation of mining and marketing of mineral gypsum as well as agriculture grade gypsum.