Godawari Power and Ispat Ltd suspends operations at 2 MTPA Iron Ore Pellet Plant

Godawari Power and Ispat Limited, has temporarily suspended the operations at 2.0 MnT Iron Ore Pellet Plant situated at phasell, Siltara Industrial Area, Raipur, Chhattisgarh w.e.f. 14.07.2026, due to curtailment of contracted gas supplies by GAIL, pursuant to withdrawal of Natural Gas (Supply Regulation) Order, 2026 vide Gazette Notification dated 04.07.2026, continuing Force Majeure situation as communicated by the upstream supplier(s) and operational feasibility, resulting in increased gas pricing, effective from 09.07.2026, and also on account of lower production of iron ore from Ari Dongri Mines in view of rainy season. The higher cost natural gas prices, on account of additional cost of drawing natural gas beyond the contracted supplies coupled with sourcing iron ore from market at higher cost, is making production of pellets economically, unviable.

The shutdown of Pellet Plant will result into lower the production and sales volumes of Iron Ore Pellets, impacting profitability of the Company in Q2FY27, however there will be no long-term impact on profitability, as the Company, iron ore production to volume to increase post monsoon and gas supplies are nomalized.

Source : Equity Bulls

Keywords

GodawariPowerandIspat GPIL Operations Suspension 2MTPA IronOrePelletPlant