Godawari Power & Ispat Share Price Falls Over 2%; Temporarily Suspends Operations at 2 MTPA Raipur Pellet Plant

Godawari Power & Ispat Limited (GPIL) has temporarily ceased operations at its 2 MTPA Iron Ore Pellet Plant in Raipur, Chhattisgarh, effective July 14, 2026, as per the exchange filings, as per the exchange filings.  

This decision follows a sudden reduction in contracted gas supplies by GAIL (India) Limited, triggered by the withdrawal of the Natural Gas (Supply Regulation) Order, 2026. 

Impact of GAIL Gas Curtailment 

The curtailment of gas supplies by GAIL (India) Limited has led to a Force Majeure situation, severely affecting the availability and affordability of fuel for the plant.  

Starting July 9, 2026, GPIL faced increased energy costs, making pellet production economically unviable. The company also encountered higher market costs for external iron ore purchases. 

Production Costs and Monsoon Challenges 

In addition to the fuel crisis, GPIL's internal iron ore output from its Ari Dongri Mines has decreased due to the monsoon season. These factors have collectively pressured Q2 FY27 volumes and profitability. However, management anticipates a return to normal operations post-monsoon. 

Read More: NSDL Board Meeting on July 30 to Consider Q1 FY27 Results, AGM Date and Other Key Matters! 

Revenue Impact and Market Reaction 

The Raipur pellet plant contributed ₹259 crore to GPIL's annual turnover, accounting for 5.50% of its total revenue in the previous financial year. Following the regulatory disclosure, equity markets reacted promptly to the operational halt. 

Godawari Power & Ispat Share Price Performance 

As of July 14, 2026, at 1:46 PM, Godawari Power & Ispat share price on NSE was trading at ₹250.40, down by 2.32% from the previous closing price. 

Conclusion 

Godawari Power & Ispat's temporary suspension of its Raipur pellet plant operations is due to GAIL's gas supply curtailment. The plant contributed ₹259 crore, or 5.50% of annual revenue, impacting Q2 FY27 profitability. 

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