Date:26/03/2006 URL: http://www.thehindubusinessline.com/2006/03/26/stories/2006032602880200.htm

Back Godawari Power forms jt venture co for coal mining

Our Bureau

Kolkata , March 25

Godawari Power & Ispat Ltd, a member of the Rs 550-crore Hira Group of Industries, has formed a joint venture company with its other partners for a coal mining project in Chhattisgarh.

According to Mr B.L. Agarwal, Chairman and Managing Director, the Union Ministry of Mines has allocated coal mines to the company in Chhattisgarh with a total reserve of 106.5 million tonnes.

"We have formed a joint venture company with four other players. The mining would be done by this company. We are holding 35 per cent stake. So, accordingly 35 per cent of the output would come to us," Mr Agarwal told presspersons.

Public issue

He was in the city to attend a press conference for the company's forthcoming public issue. Godawari is offering 82.95 lakh shares of Rs 10 face value through the book-building route. The price band is fixed at Rs 70-81.

The company has been awarded iron-mining licences too. The mines have been awarded at the Borio Tibbu and Ari Dongri area of Chhattisgarh. Iron mining would be done by Godawari itself.

The company is currently engaged in the production of sponge iron, steel billets, steel wires and captive power generation.