Godawari Power & Ispat Ltd

Godawari Power & Ispat is mainly engaged in the business of Mining of Iron Ore and Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys with generation of Electricity.

Captive Iron Ore Mines:
Company has two capitve mines- Ari Dongri Mine & Boria Tibu Mine.
GPIL sources 85% of its iron ore needs captively from its mines for the production of steel.
Captive mining leads to huge raw material costs saving.
Subsidiary-ASL has to rely on merchant mines for its RM needs.

Capacity as of FY20: ^#
Iron Ore: 2.1 million tonne per annum
Iron Ore Pellet: 2.8 million tonne per annum (inclusive of ASL pellet capacity)
Sponge Iron: 0.5 million tonne per annum
Billet: 0.4 million tonne per annum
MS Rounds: 0.4 million tonne per annum
HB Wires: 0.15 million tonne per annum
Ferro Alloys: 16,500 tonne per annum
Power: 73 MW

Stake Sale in Subsidiary-Ardent Steel Ltd: ^#
GPIL has reduced its stake in ASL to 37.85%, from 76.34%, but will retain management control.
It will utilise the proceeds, of around 76.24 Cr (net of capital gain tax), towards debt reduction.

Environmental Clearance for expansion & modernization of existing facilities: ^#
This will increase forward integration and provide more capacity for beneficiation of iron ore.

MoU with the Government of Chhattisgarh: ^#
Cost of project is estimated at 1400 Cr for Raipur Region & 900 Cr for Bastar Region.
It will be implemented in phased manner mainly out of internal accruals.
The investment will be spread out over 4-5 years.

Power Subsidiary-Godawari Green Energy: ^#
Solar plant located at Jaisalmer, Rajasthan. The project was awarded under Jawaharlal Nehru National Solar Mission, Phase I of Govt. of India.
Operational since FY14, fixed price PPA with NTPC Vidyut Vyapar Nigam for 25 years at
12.20/unit. Solar plant is self sufficient to meet its debt obligation.