Godawari Power rallies on MoEF nod for iron ore mining in Chhattisgarh

The stock rallied 12% to Rs 146 on NSE.

Shares of Godawari Power and Ispat has rallied 12% to Rs 146 on NSE after the company after the company said it has received approval from the Indian government for diversion of 32.36 hectares (ha) forest land for iron ore mining in Chhattisgarh.

The stock opened at Rs 130 and touched high of Rs 149 on NSE. The trading volumes on the counter more than doubled with a combined 228,171 shares changed hands on NSE and BSE till 1027 hours.

“The Government of India, Ministry of Environment & Forests & Climate Change (Forest Conservation Division) vide its letter dated February 19, 2015 has granted its final approval (Stage - II) under section-2 of the Forest (Conservation) Act, 1980 for diversion of additional 32.36 ha forest land for iron ore mining in Village Kachche, Dist: Baster, Kanker, Chhattisgarh, adjacent to the company's existing Ari Dongri Iron Ore mines,” Godwari Power and Ispat said in a statement.

Upon execution of mining lease and commencement of operation in the additional 32.36 ha, the total mining lease area of Ari Dongri Iron ore mines will get expanded from 106.60 ha to 138.96 ha and the production capacity from 0.7 MTPA to 1.405 MTPA which is expected to be executed within next 2-3 months.

Post commencement of commercial operation in enhanced mining area, the entire requirement of iron ore of the company shall be met from captive iron ore mines upon achievement of full production in captive iron ore mines, leading to cost savings, it added.