HZL to raise output 67%

Hindustan Zinc (HZL) would ramp up its zinc annual capacity to 670,000 tonnes by the end of the current financial year to March, Chief Executive Officer M S Mehta said today.

The target is 67 per cent higher than the company's current zinc annual output of 400,000 tonnes.

"Our new projects, largely in Rajasthan, will be commissioned by the end of this financial year. They would enhance our zinc-producing capacity by 250,000 tonnes annually," Mehta told reporters on the sidelines of an industry function.

The company has set a sales target of 500,000 tonnes zinc for the current year as against 350,000 tonnes achieved last year. Of its total sales, the company hoped to export up to 200,000 tonnes, Mehta said.

Last year, Hindustan Zinc had sold 150,000 tonnes zinc overseas.

Besides, the company is also working on a 160 mw captive power plant at its existing facilities in Rajasthan.

"We able to commission the first unit of 80 mw well within this financial year," Mehta said. The second unit of the remaining 80 mw was likely to spill over to the next financial year, but not beyond the first quarter, he said.

He said the company had enough reserves of lead and zinc for the next two decades.

The company has planned Rs 1,500 crore capital expenditure to fund its expansion plans in the current financial year.

"The capital expenditure would be funded through internal accruals. We have no plan to raise debt," Mehta said.

Mehta sees the domestic demand for zinc and lead remaining buoyant in the next three to four years.

The company's current annual lead capacity is 85,000 tonnes.