Godawari Power Temporarily Suspends Raipur Pellet Plant

17 Jul 2026 CW Team

Godawari Power & Ispat has temporarily suspended operations at the two million tonnes (mn t) iron ore pellet plant located at Phase II, Siltara Industrial Area, Raipur, Chhattisgarh, with effect from 14 July 2026. The company stated that the suspension applies to pellet production and associated plant operations until further notice. The decision follows an assessment of immediate operational and commercial feasibility.

The company attributed the suspension to curtailment of contracted gas supplies by GAIL, following withdrawal of the Natural Gas (Supply Regulation) Order, 2026 as notified in the Gazette dated four July 2026. It reported a continuing Force Majeure situation communicated by upstream suppliers and said increased gas pricing, effective from nine July 2026, compounded the operational constraints. The firm also cited lower iron ore output from the Ari Dongri mines owing to the monsoon season.

Godawari Power indicated that higher natural gas costs, including additional charges for drawing volumes beyond contracted supplies, together with the need to source iron ore from the market at elevated prices, have rendered pellet production economically unviable at present. The temporary shutdown is expected to lower production and sales volumes of iron ore pellets and to adversely affect profitability in the second quarter of FY27. The company quantified the plant capacity as two million tonnes but did not provide immediate estimates of the earnings impact.

Management said the measures are temporary and that there is no expectation of a long-term impairment to the business, as mine production is anticipated to recover after the monsoon and gas supplies are normalised. The company will continue to monitor gas supply developments and market conditions and will evaluate recommencement of operations when commercially justified. Operational readiness and cost dynamics will guide the timing of any restart.

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