Godawari Power & Ispat to Build 2 Million Tonne Steel Plant in Chhattisgarh

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Image Courtesy: Godawari Power & Ispat

Godawari Power & Ispat Ltd (GPIL), a Chhattisgarh-based integrated steel manufacturer, is set to invest ₹6,000 crore in establishing a greenfield steel facility in Sarora village, located in the Tilda tehsil of Raipur district. The new integrated plant will have a total capacity of 2 million metric tonnes per annum (MMTPA) and marks a major expansion in the company’s steel-making footprint.

The proposed project has received the go-ahead from the Ministry of Environment, Forest and Climate Change (MoEFCC). The approval was granted during the 7th meeting of the Expert Appraisal Committee (EAC) held on July 9, 2025. This clearance enables the company to begin construction and development activities for the new plant.

The upcoming facility will be developed in two stages. The first phase will have a capacity of 1 MMTPA, while the second phase will double the plant’s output to 2 MMTPA. The plant will be built on 578 acres and is expected to be completed within 36 months of the start of construction. The funding for the project will be sourced through a combination of internal resources and external borrowing.

Godawari Power & Ispat Ltd (GPIL) is set to establish a state-of-the-art steel manufacturing complex that will integrate several core production units to support large-scale operations. The facility will include a 3.6 million tonne per annum (MMTPA) beneficiation plant and a 3 MMTPA pellet plant, which will process raw materials into high-quality inputs for steelmaking. Additionally, a 0.8 MMTPA coke oven unit and a 1.2 MMTPA sinter plant will be built to supply essential components for iron production.

At the heart of the complex will be a 2 MMTPA blast furnace, equipped with a pig casting machine to convert molten iron into usable forms. Downstream operations will be supported by a 2.8 MMTPA hot strip mill, enabling the production of rolled steel products. To ensure energy self-sufficiency and uninterrupted operations, GPIL will also develop a 312.5 megawatt captive power plant within the premises.

Together, these integrated units are designed to enhance efficiency, reduce external dependence, and strengthen the company’s position in the domestic steel sector. These components will form a fully integrated steel-making operation, enhancing GPIL’s production efficiency and reducing dependence on external inputs.

India’s steel consumption is projected to reach 192 million tonnes by 2030, driven by robust activity in infrastructure and construction. According to research by BIGMINT, the steel market is growing at a compound annual rate of 18%. The construction and infrastructure sectors alone are expected to account for more than 60% of this demand.

In FY2024–25, India consumed 149 million tonnes of steel, up from 136 million tonnes the previous year. Of this, 47 million tonnes were used in construction, and 42 million tonnes in infrastructure. By FY2030, demand from construction is expected to grow to 64 million tonnes, with infrastructure reaching 55 million tonnes, supported by major investments in housing, transport, and urban development.

Godawari Power & Ispat Ltd is part of the HIRA Group and operates as a backward-integrated steel producer. The company runs a major manufacturing facility in Siltara, Chhattisgarh, and is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). GPIL produces sponge iron, billets, ferro alloys, wire rods, and other value-added steel products for domestic and international markets.