Godawari Power plans integrated steel plant under PLI scheme

Steel Insights Bureau

Union government’s ProductionLinked Incentive (PLI) scheme has already started showing encouraging response with Godawari Power and Ispat Ltd (GPIL) recently announcing that it has decided in principle to set up an integrated steel plant with a capacity of 1.5 to 2 million tons (mt) of flat products in Chhattisgarh under the scheme.

“The estimated capital outlay shall be around `3,000 `4,000 crores. The company has initiated the process for land acquisition, obtaining of Environmental clearances, etc. for setting up of the said project and the final cost of project shall be finalized in due course,” the company intimated the stock exchanges.

“We are focusing mainly on the two segments: one is API grade of steel, which is being used for transportation of the gas and oil. And second will be the coated steel, which is being used for the roofing and all that,” Managing Director B L Agrawal said.

“Further details on this project will be finalized as we go forward. And by the time we get the approval from MoEF and then the final allotment of land is done,” Dinesh Gandhi, director of GPIL told investors during a conference call.

“We are focusing mainly on the two segments: API grade of steel, which is being used for transportation of gas and oil and coated steel, which is being used for roofing and all that.” B L Agrawal, Managing Director, GPIL

GPIL completed its last major expansion in 2014 by setting up a 1.5 mt pellet plant. And thereafter only bottlenecking exercises were done.

“I believe that we will be able to complete our capex with a much lower cost as compared to our peers. Land has already been identified the environmental clearance documents are under preparation and techno-commercial discussion with the equipment supplier is already going on, not only with the European supplier, but also with the Chinese supplier.