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The company was incorporated in the state of Andhra Pradesh on January 28th, 1986 as Priyadarshini Sponge Iron Ltd & a certificate of commencement of business was obtained on April 1st 1986. A fresh certificate of incorporation consequent on change of name as Goldstar Steel & Alloy Ltd was issued by the registrar of companies Andhra Pradesh Hyderabad on May 16 1988. The immediate object of the company was to set up a coal based Direct Reduce Iron (DRI also known as Sponge Iron) plant for manufacture of 2.2 lakh tonnes per annum in technical collaboration with M/s Mannesman Demag Huttentechnik (MDH) Germany. The project was conceived & formulated in association with National Mineral Development Corporation (NMDC) a Government of India undertaking which controls a major portion of the Iron ore mines in the country.