Godawari Power & Ispat rose 4.69% to Rs 480 after the company signed a memorandum of understanding with the Government of Chhattisgarh for setting up facilities in Raipur and Bastar region in the state.
Under the MoU, Godawari Power will set up sponge iron, steel melting shops, land refining furnace, steel, ferro alloys, rolling mill, coal gasifier, power and oxygen facilities in Raipur and Bastar region of Chhattisgarh.The cost of projects is estimated at Rs 1,400 crore for Raipur Region and Rs 900 crore for Bastar Region. Both the projects will be implemented in phased manner mainly out of internal accruals. The investment will be spread for 4 to 5 years after obtaining all regulatory approvals.
The state government will facilitate the company in procuring land, water allocation, coal linkages, facilitate expeditious grant of approvals and also provide all incentives available to the mega/very large industrial projects as per the Industrial Policy.
Godawari Power & Ispat is an integrated steel manufacturer. The company is mainly engaged in generation of electricity, Iron ore mining and manufacturing of sponge iron, iron ore pellets, steel billets, ferro alloys and H.B. wire.
On a consolidated basis, the company's net profit jumped 110% to Rs 104.12 crore on a 16.7% rise in net sales to Rs 966.77 crore in Q2 September 2020 over Q2 September 2019.
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