The Board of Directors of Godawari Power and Ispat Limited approved the proposal to set up a new 1.00 Million Tons Per Annum (MTPA) Integrated Steel Plant. This strategic expansion aims to capitalize on robust structural steel demand in India. The total investment is estimated at Rs 7,000 Crores, funded equally through debt and internal accruals (1:1 ratio). The tentative timeline for completion is 3 years and 6 months.
Strategic Expansion Approval
Godawari Power and Ispat Limited announced the outcome of its Board Meeting held on March 24, 2026. The Board formally approved a major capital expenditure proposal to establish a new Integrated Steel Plant.
Project Details and Capacity
The new facility will have a manufacturing capacity of 1.00 Million tons per annum (MTPA) of finished iron and steel products, focusing on heavy and medium section structural steel and wire rods. This move is designed to significantly strengthen the Company’s presence in the core steel sector.
- Location: Village Sarora, Tehsil Tilda, District Raipur, Chhattisgarh.
- Current Capacity: 0.5 MTPA at Siltara Industrial Area, Raipur.
- Capacity Utilisation: Currently operating at Above 95%.
- Proposed Addition: 1.00 MTPA Integrated Steel Plant.
Investment and Financing Structure
The financial outlay required for this expansion is substantial, signaling a major commitment to growth. The total Investment Required is approximately Rs 7,000 Crores.
The funding strategy emphasizes a balanced approach, as detailed in Annexure-A:
The cost of the project is proposed to be financed through debt & from Internal Accruals in a precise ratio of 1:1.
Timeline and Rationale
The management has set an ambitious yet tentative timeline for commissioning the new capacity.
The Period within which the proposed capacity is to be added is estimated to be 3 Years and 6 Months (Tentative).
The primary Rationale driving this expansion is the robust and growing demand for structural steel in India, necessitating an immediate capacity scale-up.
The Board meeting commenced at 12:30 P.M. and concluded at 1:50 PM on the date of the announcement.
Source: BSE
