Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indian integrated steelmaker Godawari Power and Ispat (GPIL) has proposed setting up a plant for flat products with a production capacity of 1.5-2mn mt in Chhattisgarh under the Production- Linked Incentive (PLI) scheme.


The company had initiated the process with the identification of land and applying for environmental clearance. The techno-commercial discussion is also going on with equipment suppliers from Europe and China.


The company plans to focus on API grade and coated steel under the PLI scheme with the recent subsidy announced in the range of 4- 12pc.


API grades are consumed in the transportation of gas and oil and coated steel is required in roofing.


The company expects to commission the new plant in the first half of FY 2024-25 ending March 2025. The company states there will be more clarity on the exact size of the plant and product finalization in the next conference call of Q2 FY22.


India produces around 11mn mt and imports around 3-4mn mt of these specialty steel products. The Indian government, under its motto of self-reliance, looks to lower the dependence on imports.  


The company has integrated long steel manufacturing facilities that include 2.4mn mt of iron ore pellets, 500,000mt of sponge iron, 400,000mt of billets, 400,000mt of MS rounds, and 150,000mt of H B wires. 

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