Godawari Power AND Ispat Limited

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Economic/Social Impact of the Project INTRODUCTION- Godawari Power & Ispat Limited was incorporated on 21/09/1999 with the Registrar of Companies, Gwalior [M.P.] with the main object of business of manufacturing Iron, Steel and Generating Power, having its Regd. Office at Plot No.428/2, Phase-I, Industrial Area, Siltara, Raipur [Chhattisgarh] and Corporate Office at Hira Arcade, Near New Bus Stand, Pandri, Raipur-492001. The current proposal is for expansion of its manufacturing activities at district Rajnandgaon, Chhattisgarh. BACKGROUND- The promoters of the company are the Hira Group of Industries. The group is one of the largest group of Chhattisgarh with primary interest in power generation, sponge iron, steel making, steel rolled products, ferro alloys, with backward integration to mining of coal & iron ore and beneficiation facilities. In 2011-12, the group turnover has touched Rs.2875 Cr. within which the turnover of Godawari Power & Ispat Ltd was Rs.1920 Cr. The main plant is situated in Raipur, Chhattisgarh. However, no further expansion is possible in Raipur due to restrictions imposed by the State Government and Environmental Authority. PROPOSAL- GPIL has executed an MoU with the Government of Chhattisgarh on 16th August, 2004 for setting up manufacturing facilities viz. Spone Iron - 0.65 MTPA, Power - 50MW, Steel Billets - 0.55 MTPA, Ferro Alloys - 0.033 MTPA, HB Wires - 0.3 MTPA, Iron Ore mines - 3.00 MTPA, Coal Mines - 3.00 MTPA. Accordingly, coal blocks at Nakia-I & II were allotted to the company in January, 2006 jointly with four other companies forming consortium viz. Chhattisgarh Captive Coal Mining Ltd. However, due to restrictions imposed by State Government for further industrial development at Raipur, the company executed a fresh MoU with the Government of Chhattisgarh on 25th May, 2010 changing the location to district Rajnandgaon, for setting up an Integrated Steel Plant with a project cost of Rs.5920.00 Crores at Village Baigatola, Nawagaon, Kakarel, Mauhabhatta & Baghera in District - Rajnandgaon, Chhattisgarh over an area of 415 hectare of land. The proposed major manufacturing facilities are -- DRI Plant - 1.0MTPA, SMS - 2.0 MTPA, Steel Rolled Products - 2.0 MTPA, Power generation - 125 MW alongwith Coke Oven, Sinter, BF, Ferro Alloys etc. JUSTIFICATION- •?Currently industrial development in Rajnandgaon district is low. The establishment of this project will balance the industrial development of the State, •?To integrate the operation by setting up facilities for forward and backward value chain in the steel segment in organized sector with complete value chain straddling across iron ore to steel products including other intermediate products. •?To achieve economies of scale by setting up sizable manufacturing facilities. •?To gainfully utilize waste generated during the process of manufacturing and maximize the return for stakeholders.