Godawari Power and Ispat Ltd, a Chhattisgarh-based iron ore pellets and steel producer, plans to set up a 1 million tonnes steel plant in the state for about Rs 4,500 crore, a senior company official said today.
The company, part of Raipur-based Hira Group, has acquired about 500 acres of land in Rajnandgaon district of Chhattisgarh and is doing feasibility studies for setting up the project, Godawari Power Executive Director Abhishek Agrawal said here.
"We have plans to set up a 1 MTPA plant, it will cost about Rs 4,500 crore. Currently we are trying to work out the route, whether the plant will be based on syn gas or on conventional route. The studies are on," he said after launching iron ore pellets under the brand name of Ecopel.
Agrawal further said that the company has not yet decided the product profile of its upcoming plant and is may set up a flat steel manufacturing plant.
Godawari Power and Ispat is a small scale steel producer, having a wire rod mill of 25 lakh tonnes capacity in Raipur. However, it has presence in various segments of steel supply chain and has iron ore pellet manufacturing capacity of about 1.8 MTPA (million tonnes per annum).
Besides, the company has two iron ore mines, Ari Dongri and Boria Tibu, and a coal block in Chhattisgarh. Of this, Ari Dongri mine is producing, while the other iron ore mine is located in naxal affected area, thereby affecting company's plans. The coal mine, Nakia, is waiting for Environment Ministry's clearance.
The company plans to expand its pellet making capacity to 2.4 MTPA during the current fiscal.
In 2012-13, it had reported a consolidated net profit of Rs 148.81 crore and a net sales of Rs 2,356.71 crore. During the first quarter of the current fiscal, its net profit and revenues stood at Rs 27.56 crore and Rs 511 crore, respectively.
According to Agrawal, Godawari Power has also expanded into the renewable energy sector and has recently commissioned a 50-MW solar power plant in Jaisalmer, Rajasthan.
The company has invested about Rs 790 crore on the solar power venture and is selling its