Godawari Power Suspends Operations at Iron Ore Pellet Plant Due to Gas Supply Curtailment
Godawari Power And Ispat limited has temporarily suspended operations at its 2.0 Million Tonne Per Annum (MTPA) Iron Ore Pellet Plant located in the Siltara Industrial Area, Raipur, Chhattisgarh. The suspension was effective from July 14, 2026.The decision to halt production stems primarily from the curtailment of contracted gas supplies by GAIL. This supply issue arose following the withdrawal of the Natural Gas (Supply Regulation) Order, 2026, and is attributed to a Force Majeure situation communicated by upstream suppliers.
Further compounding the operational difficulty are economic factors related to input costs. The company noted that increased natural gas pricing, which became effective from July 9, 2026, coupled with the requirement to source iron ore from the market at higher prices, has made pellet production economically unviable. Additionally, lower iron ore production from Ari Dongri Mines, influenced by the rainy season, contributed to the operational review.
The shutdown of the Pellet Plant is anticipated to lead to lower production and sales volumes of Iron Ore Pellets, impacting the company's profitability in Q2FY27. However, management stated that there will be no long-term impact on profitability, as iron ore production volume is expected to increase post-monsoon and gas supplies are normalized.
The unit’s financial contribution prior to the suspension was detailed as follows:
| Metric | Value |
|---|---|
| Turnover Contributed by Unit | Rs 259 Crores |
| Percentage of Entity Revenue | 5.50% |
This operational update concerns the temporary closure of the unit, which commenced on July 14, 2026.
GPIL Stock Price Movement
Godawari Power And Ispat limited's (GPIL) shares are slipping by 1.31% in live trading, currently priced at ₹253 as of 12:30 PM. The stock traded amidst a volume of 360,904 shares, reflecting the downside move from its previous closing value.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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