Godawari Power & Ispat Share Price in Focus; Gets Consent for 5.75 Lakh Tonne Steel Melting Capacity

Godawari Power & Ispat Limited has received consent to operate its expanded Steel Melting Shop (SMS) at Siltara Industrial Area in Raipur, Chhattisgarh. The facility’s annual capacity has increased from 5,25,000 metric tonnes to 5,75,000 metric tonnes. 

The Chhattisgarh Environment Conservation Board granted the approval, which the company received on 27 October 2026. The revised capacity adds 50,000 metric tonnes a year to the existing facility. 

Plant Starts Operating at Higher Capacity 

The company said the plant has started operating at the increased capacity with immediate effect. The approval covers the Steel Melting Shop at its existing site in Raipur. 

The expansion increases the facility’s capacity to manufacture steel billets. The company’s disclosure did not specify the investment involved in the expansion or provide estimates of the additional production expected from the increased capacity. 

Sponge Iron to Be Fully Used Captively 

Godawari Power & Ispat said the higher steel billet manufacturing capacity will allow it to use 100% of the sponge iron it produces captively. 

Captive consumption means using materials produced by a company in its own manufacturing operations. In this case, the sponge iron produced by Godawari Power & Ispat will be used in its steelmaking process. 

The company said this would lead to value addition and improve operating margins. It did not provide figures for the expected margin improvement or quantify the financial benefit from the change. 

Impact of the Capacity Expansion 

The increase in SMS capacity allows the company to use its sponge iron production in steel billet manufacturing. The expanded facility has already started operating, following receipt of the consent. 

Godawari Power & Ispat stated that the higher capacity would be value-accretive. However, its disclosure did not include details of the expected increase in revenue, production volumes, or operating profit. 

The immediate operational change is an increase of 50,000 metric tonnes in annual steel melting capacity, taking the total to 5,75,000 metric tonnes. 

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Godawari Power & Ispat Share Price Performance  

As of October 28, 2026, 3:06 pm, Godawari Power & Ispat share price was trading at ₹193.53, a 0.37% decrease from the previous closing price. 

Conclusion  

The approval raises Godawari Power & Ispat’s annual steel melting capacity by 50,000 metric tonnes. The company expects the increase to support value addition and improve operating margins. 

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