Godawari Power surges 13% on environment clearance for capacity expansion

The company said the capex required for the above expansion will be invested out of internal accruals of the company

Shares of Godawari Power and Ispat rallied 13 per cent to Rs 633, also its 52-week high, on the BSE on Monday after the company got approval for ‘consent to operate' the enhanced capacity of iron ore pellet plant and consent to set up manufacturing facilities in other divisions.

At 12:24 pm, the stock was trading 9 per cent higher at Rs 610, as compared to 1.6 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined around 380,000 equity shares changing hands on the NSE and BSE, so far.

Chhattisgarh Environment Conservation Board, Raipur has accorded its approval for 'Consent to Operate' enhanced capacity of iron ore pellet plant from 21,00,000 to 24,00,000 tons per annum (TPA) with immediate effect.

Similarly, the Chhattisgarh Environment Conservation Board, Raipur has also accorded its "Permission to Establish' the proposed expansion and modernization of existing manufacturing facilities along with integration of existing environmental clearances at exiting plant location, it said.

The company further said the capex required for the above expansion will be invested out of internal accruals of the company.

On February 24, Godawari Power said that the company has started booking export orders of high grade iron ore pellets (65.5 per cent Fe) to China and Other Countries. The first export order of 50,000 MTs has already been booked and the delivery will take place in the month of April, 2021.Going forward the Company will mainly concentrate on production and export of high grade iron ore pellet only, it said.