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Informist, Tuesday, Jul. 14, 2026

 

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--Godawari Power shuts iron ore pellet unit in Chhattisgarh temporarily
--Godawari Power shuts Chhattisgarh unit over shortage of gas from GAIL
--Godawari Power: Higher cost of gas making pellets production unviable
--Godawari Power: Pellets unit shutdown to affect sales, profitability in Q2
--Godawari Power: Chhattisgarh pellet unit turnover was INR 2.6 bln in FY26

 

MUMBAI – Godawari Power and Ispat Ltd. Tuesday said it had temporarily shut its 2 million tonne per annum iron ore pellet plant in Chhattisgarh. Higher cost of natural gas and sourcing iron ore is making production of pellets economically unviable, the company said in an exchange filing. While the company said this temporary closure will have no long-term impact on profitability, it will lead to lower production and sales volumes, affecting profitability in the September quarter.

 

The pellet plant, located in Siltara Industrial Area, Raipur, Chhattisgarh, reported a turnover of 2.59 billion in 2025-26(Apr-Mar), which is 5.5% of the company's standalone revenue for the financial year. Godawari Power expects iron ore production volume to increase post monsoon and once gas supplies normalise. 

 

GAIL India Ltd. has curtailed contracted gas supplies to the company. Additionally, its upstream suppliers have continued force majeure measures, the combination of which has resulted in an increase in gas costs for the company. Lower production of iron ore from Ari Dongri mines amid monsoon is forcing the company to source iron ore from the market at higher costs, according to the filing.
 

For the March quarter, Godawari Power reported a consolidated net profit of INR 2.80 billion on a revenue of INR 16.10 billion. At 1303 IST, shares of the company were trading over 2% lower at INR 251.05 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Eshitva Prakash

Edited by Deepshikha Bhardwaj

 

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