Godawari Power and Ispat's stock jumped as much as five percent in early trade on Thursday after the company received environmental approval for increased production capacity and the construction of a beneficiation plant.
The Government of India, Ministry of Environment & Forests & Climate Change, Impact Assessment Division has accorded its environment clearance for enhancement of iron ore production from 1.405 MTPA to 2.35 MTPA in Ari Dongri Iron Ore Mines at Chhattisgarh, and for setting up of beneficiation plant of 0.6 MTPA capacity, the company said in a regulatory filing.
The company expects the production of the enhanced iron ore mining capacity shall be started in the next two-three months.
“Post commencement of commercial operation of enhanced mining capacity and ramping up of the production, the 100% iron ore requirement of the Company, shall be met from captive mines, which lead to substantial cost-saving, as approx. 20% of our exiting requirement is met from outside purchases, cost of which is very high and as compared to market prices,” the company added.
The stock price of the company has jumped 48 percent in the last month and is up more than 183 percent YTD.
At 10:10 am, the shares of Godawari Power and Ispat were trading 1.91 percent higher at Rs 1,352.10 apiece on the BSE.