Godawari Power Signs 7-year Regasified LNG Supply Pact with GAIL

Godawari Power and Ispat Ltd (GPIL) has taken a significant step toward securing its energy needs by signing a seven-year agreement with GAIL (India) Ltd for the supply of regasified liquefied natural gas (RLNG). The agreement, finalised on December 10, 2024, is aimed at supporting GPIL’s upcoming pellet plant, marking a critical development in the company’s operations.

Long-Term Partnership with GAIL

The agreement signed and exchanged in Raipur, ensures a consistent RLNG supply to GPIL for the next seven years. This strategic partnership with GAIL is expected to bolster GPIL’s operational efficiency and energy sustainability for its pellet production. According to the company’s regulatory filing, the deal aligns with GPIL’s ordinary course of business and is crucial for the smooth operation of the upcoming facility.

GPIL’s Financial Performance

Despite this strategic move, GPIL reported a notable decline in its financial performance for the second quarter ending September 30, 2024. The company posted a net profit of ₹159.1 crore, reflecting a 38.1% year-on-year decline compared to ₹256.9 crore in the corresponding quarter of the previous fiscal. The drop highlights ongoing challenges in the market, even as the company focuses on long-term growth strategies like the RLNG supply agreement.

GPIL Share Performance

As of December 11, 2024, 11:38 AM, the shares of Godawari Power & Ispat Ltd. are trading at ₹239.13 per share with a surge of 2.04% from its previous day’s closing price. Over the last month, the stock has seen a surge of 22.64%. The stock has a 52-week high and 52-week low of ₹253.40 per share and ₹131.60 per share respectively.

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