Godawari Power & Ispat Limited (GPIL) has temporarily ceased operations at its 2 MTPA Iron Ore Pellet Plant in Raipur, Chhattisgarh, effective July 14, 2026, as per the exchange filings, as per the exchange filings.
This decision follows a sudden reduction in contracted gas supplies by GAIL (India) Limited, triggered by the withdrawal of the Natural Gas (Supply Regulation) Order, 2026.
The curtailment of gas supplies by GAIL (India) Limited has led to a Force Majeure situation, severely affecting the availability and affordability of fuel for the plant.
Starting July 9, 2026, GPIL faced increased energy costs, making pellet production economically unviable. The company also encountered higher market costs for external iron ore purchases.
In addition to the fuel crisis, GPIL's internal iron ore output from its Ari Dongri Mines has decreased due to the monsoon season. These factors have collectively pressured Q2 FY27 volumes and profitability. However, management anticipates a return to normal operations post-monsoon.
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The Raipur pellet plant contributed ₹259 crore to GPIL's annual turnover, accounting for 5.50% of its total revenue in the previous financial year. Following the regulatory disclosure, equity markets reacted promptly to the operational halt.
As of July 14, 2026, at 1:46 PM, Godawari Power & Ispat share price on NSE was trading at ₹250.40, down by 2.32% from the previous closing price.
Godawari Power & Ispat's temporary suspension of its Raipur pellet plant operations is due to GAIL's gas supply curtailment. The plant contributed ₹259 crore, or 5.50% of annual revenue, impacting Q2 FY27 profitability.
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Published on: Jul 14, 2026, 5:20 PM IST
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