Hindustan Zinc contributes ₹18,963 cr to govt exchequer in FY25, shows data

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Hindustan Zinc Limited, a Vedanta Group company, contributed ₹18,963 crore to the government exchequer in the financial year 2024-25 (FY25), according to the company’s Tax Transparency Report.

 

The FY25 contribution of ₹18,963 crore by Hindustan Zinc included ₹4,154 crore in government royalties, ₹3,619 crore as corporate dividend to the government, ₹5,963 crore in indirect taxes, and ₹3,385 crore in taxes on income.

 

The government holds a 27.92 per cent stake in the company. The company’s total contribution in FY25 also included payments to the Rajasthan state government, the District Mineral Foundation (DMF), and the National Mineral Exploration Trust. These payments represent 56 per cent of the company’s revenue from operations.

 

The FY25 contribution registered a 44 per cent increase over the previous financial year's contribution. The company’s cumulative contribution to the exchequer over the past 5 years stands at ₹87,616 crore. 

 

Hindustan Zinc's indirect tax contribution in the last five financial years stood at ₹27,500 crore, which includes Central Goods and Services Tax, State Goods and Services Tax, and Integrated Goods and Services Tax collected from the sale of goods. The company has contributed an average of ₹3,600 crore per year to the Rajasthan government.

 

"Despite volatility in global markets and fluctuating metal prices, the company has demonstrated unwavering focus on fiscal discipline. Hindustan Zinc takes great pride in providing voluntary disclosures about its tax contributions which supports India’s robust growth and socioeconomic development," the company said in the report.

 

Operational data

 

The company reported mined metal production of 1,095 kilotonnes (KT) and refined metal production of 1,052 KT in FY25. It recorded a four-year lowest zinc cost of production at $1,052 per million tonnes (MT).

 

Hindustan Zinc’s total metal reserves increased to 13.1 MT, net of 1.2 MT produced during the year, while maintaining a mine life of over 25 years.