The board of directors of Indian steel and pellet producer Godavari Ispat and Power Limited (GIPL) has approved the setting up of a second pellet plant with a capacity of 2.7 million mt per year, a company statement said on Friday, December 30.
On completion of its second pellet plant, GIPL’s total installed capacity will rise to 5.4 million mt per year.
The GIPL board has also approved construction of an iron ore beneficiation plant to feed new pellets to the plant, and the total aggregate investment in the overall project will be an estimated $122 million.
To feed the increased capacity of the pellet plants, GIPL also proposes to ramp up capacity of its captive Ari Dongri mines to 6 million mt per year from 2.35 million mt per year at present.
The company has set a timeline of 18 months for completion of the projects.