The Board of Directors of Godawari Power and Ispat (GPIL) has in principle approved the proposal for setting up integrated steel plant with a capacity of 1.5 to two million tonne of flat products in the state of Chhattisgarh under Production Linked Incentive (PLI) Scheme.
The estimated capital outlay would be around Rs 3,000 to Rs 4,000 crore.
The company has initiated the process for land acquisition, obtaining environmental clearances, etc for setting up the said project.The final cost of the project will be finalised in due course.
The Board also approved investment up to Rs 70.20 crore for acquisition of additional equity shares proposed to be offered by Hira Ferro Alloys (HFAL) on preferential basis to GPIL, subject to approval of shareholders of HFAL.
HFAL is an associate company of GPIL, in which GPIL is already holding 48.45 percent of the equity share.
Consequent upon aforesaid further investment, HFAL will become subsidiary of the company with 56.45 percent of enhanced share capital of HFAL.
HFAL, engaged in the business of manufacturing ferro alloys is setting up 70 MW solar power plant in Rajnandgaon, Chhattisgarh, for its captive use with a project cost envisaged at Rs 230 crore.
The project will be financed partially through equity and partially through bank finance.