The Board of Directors of Godawari Power and Ispat Limited approved a major strategic investment to set up a new 1.00 MTPA Integrated Steel Plant. The project, located near Raipur, Chhattisgarh, requires an investment of approximately Rs. 7,000 Crores. Financing will be split equally (1:1) between debt and internal accruals. This expansion aims to capitalize on the robust and growing demand for structural steel across India.
Major Capacity Expansion Approved
At the Board Meeting held on March 24, 2026, Godawari Power and Ispat Limited approved a proposal for a significant expansion in its manufacturing capacity. The Board has sanctioned the setting up of a new Integrated Steel Plant.
Project Details and Scope
The proposed facility will have the capacity to manufacture 1.00 Million tons per annum (MTPA) of finished Iron & Steel products, specifically heavy and medium section structural steel and wire rods. This move is intended to strengthen the Company’s presence within the steel sector.
- Location: Village Sarora, Tehsil Tilda, District Raipur, Chhattisgarh.
- Existing Capacity: 0.5 MTPA at Siltara Industrial Area, Raipur.
- Capacity Addition: 1.00 MTPA Integrated Steel Plant.
- Existing Capacity Utilisation: Reported as Above 95%.
Investment and Financing
The total estimated investment required for this greenfield project is substantial, pegged at approximately Rs. 7,000 Crores.
The mode of financing for this capital expenditure is planned to be balanced, utilizing debt and internal accruals in a strict ratio of 1:1.
The tentative period within which the proposed capacity is expected to be added is 3 Years and 6 Months from the date of approval.
Strategic Rationale
The core rationale driving this multi-thousand crore investment is the identified robust and growing demand for structural steel in India. By significantly increasing production capacity, the Company aims to capture greater market share in this essential segment.
The Board Meeting commenced at 12:30 P.M. and concluded at 1:50 PM on the date of the announcement.
Source: BSE
