- Q2FY27 pellet output and earnings likely to be affected
- Higher input costs render pellet production uneconomical
Godawari Power & Ispat Ltd (GPIL) has temporarily suspended operations at its 2 million tonnes per annum (mntpa) iron ore pellet plant at Siltara, Raipur, with effect from 14 July 2026. The shutdown follows curtailed contracted natural gas supplies after the withdrawal of the Natural Gas (Supply Regulation) Order, 2026, coupled with force majeure declared by upstream suppliers. Increased gas procurement costs from 9 July and lower iron ore production from the company’s Ari Dongri mines due to the monsoon have further raised input costs, making pellet production economically unviable.
The suspension is expected to reduce the company’s pellet production and sales volumes during Q2FY’27, weighing on quarterly profitability. However, GPIL expects the impact to be temporary, anticipating improved iron ore availability after the monsoon and normalisation of contracted gas supplies, which would support the resumption of pellet operations.
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