Business Update14 Jul 2026, 12:26 pm
Godawari Power Temporarily Suspends Raipur Pellet Plant Operations
AI Summary
Godawari Power and Ispat Ltd has temporarily suspended operations at its 2.00 MPTA Iron Ore Pellet Plant in Raipur, Chhattisgarh, effective July 14, 2026. The suspension is attributed to curtailment of contracted gas supplies by GAIL due to withdrawal of the Natural Gas (Supply Regulation) Order, 2026, leading to increased gas pricing. Additionally, lower iron ore production from Ari Dongri Mines during the rainy season and higher market sourcing costs make pellet production economically unviable. The company expects lower production and sales volumes impacting Q2FY27 profitability, but anticipates no long-term impact once gas supplies normalize and iron ore production increases post-monsoon.
Key Highlights
- Pellet plant operations suspended from July 14, 2026.
- Caused by gas supply issues and increased pricing.
- Lower iron ore availability also a contributing factor.
- Expects Q2FY27 profitability impact, no long-term effect.
- Previous year's turnover from this unit was ₹259 Crores (5.50%).
Price Impact
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