Godawari Power Board Approves ₹7000 Cr Steel Plant At Sarora, Chhattisgarh

Godawari Power And Ispat Limited has received board approval for establishing a new integrated steel plant, marking a significant expansion in the company's manufacturing capabilities. The board meeting held on March 24, 2026, formally approved the proposal to strengthen the company's presence in India's growing steel sector, as disclosed in the company's regulatory filing to BSE and NSE.

Project Specifications and Location

The approved integrated steel plant will be established at village Sarora, Tehsil Tilda, District Raipur, Chhattisgarh, located approximately 50 kilometers from Raipur. The facility is designed to manufacture 1.00 million tons per annum of iron and steel finished products, specifically focusing on heavy and medium section structural steel and wire rods.

Parameter:	Details
Plant Capacity:	1.00 MTPA
Location:	Village Sarora, Raipur, Chhattisgarh
Products:	Heavy & Medium Section Structural Steel, Wire Rods
Timeline:	3 Years and 6 Months
Investment:	₹7000 Crores

Investment Structure and Financing

The project requires an estimated investment of ₹7000 crores, which will be funded through a balanced financing approach. The company has structured the funding with a debt-to-equity ratio of 1:1, utilizing both external debt financing and internal accruals equally.

Financing Details:	Specifications
Total Investment:	₹7000 Crores
Debt Component:	50% of Total Investment
Internal Accruals:	50% of Total Investment
Financing Ratio:	1:1 (Debt:Equity)

Current Operations and Expansion Rationale

Godawari Power And Ispat Limited currently operates an existing steel plant with 0.50 MTPA capacity at Siltara Industrial Area, Raipur, which maintains above 95% capacity utilization. The new facility will double the company's production capacity, positioning it to capitalize on the robust and growing demand for structural steel in India.

Regulatory Compliance and Meeting Details

The board meeting commenced at 12:30 PM and concluded at 1:50 PM on March 24, 2026. The company has filed the necessary disclosures with both BSE (Scrip Code: 532734) and NSE (Scrip Code: GPIL) under Regulation 30, ensuring full regulatory compliance for this significant capacity expansion announcement.

The board's approval reflects the company's strategic commitment to expanding its steel manufacturing footprint through substantial capital investment, leveraging both market opportunities and operational expertise in the steel sector.

Godawari Power and Ispat Limited (GPIL) has successfully completed the second tranche of its stake disposal in Ardent Steel Private Limited (ASPL), marking a significant milestone in the company's divestment strategy. The transaction, completed on March 24, 2026, involved the transfer of 2,00,000 equity shares for a total consideration of Rs 6.60 crores.

Transaction Details

The share transfer represents 2.52% of ASPL's total equity shares and forms part of GPIL's broader divestment plan announced earlier. The transaction details are summarized below:

Parameter:	Details
Shares Transferred:	2,00,000 equity shares
Consideration Amount:	Rs 6.60 crores
Percentage of ASPL:	2.52%
Transaction Date:	March 24, 2026

Impact on Shareholding Structure

Following the completion of this second tranche, GPIL's shareholding in ASPL has been significantly reduced. The transaction has resulted in a dilution of GPIL's stake from 20.98% to 18.46% in ASPL.

Shareholding Status:	Before Transaction	After Transaction
GPIL's Stake in ASPL:	20.98%	18.46%
Associate Company Status:	Yes	No

Associate Company Status Changes

A crucial outcome of this transaction is that ASPL has ceased to be an associate company of GPIL effective March 24, 2026. This change in status is directly attributed to the dilution in GPIL's stake falling below the threshold required for associate company classification.

Background and Regulatory Compliance

This transaction continues GPIL's previously announced divestment strategy. The company had initially announced on February 6, 2026, its plan to dispose of its entire 37.85% stake in ASPL for a total consideration of Rs 90.87 crores, subject to fulfillment of all requisite statutory and contractual requirements. A subsequent announcement was made on March 6, 2026, providing updates on the disposal process.

The disclosure has been made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for stakeholders and regulatory authorities.