Leading zinc producer Hindustan Zinc Ltd (HZL) on Wednesday signed a memorandum of understanding (MoU) with Government of Gujarat for a greenfield zinc smelter project in Tapi in South Gujarat.
On the back of the MoU, HZL will invest upto Rs 10,000 crore for setting up of the 300 kilo-tonnes per annum (ktpa) greenfield zinc smelter in Doswada industrial estate of Tapi district in South Gujarat. The MoU was signed by Government of Gujarat's additional chief secretary for industries and mines M K Das and HZL chief executive officer Arun Misra, with Anil Agarwal, founder and non-executive chairman of Vedanta Limited virtually attended the signing ceremony.
Located over 100 km from Hazira port and 90 km from the upcoming Magdala port, the zinc smelter facility will occupy an area of 415 acres. Entailing an investment of Rs 5,000 crore to Rs 10,000 crore in a phased manner, the facility will be operational by 2022.
In a statement issued on Wednesday, Hindustan Zinc said that the new facility - a first for the company in Gujarat - will use modern zero discharge technology and automation and create employment for 5000 directly and indirectly. The said project will be among the lowest cost smelters in the world, the company further stated.
Along with zinc, the new facility will produce other minor metals and will be in close proximity to its downstream user industries.
Commenting on the project, Gujarat Chief Minister Vijay Rupani, said that the plant will substantially increase employment and thereby boost the economy in the region. "We will extend all support to ensure that the plant is commissioned in stipulated time," Rupani added.
According to the statement, this is one of the largest MoUs signed by the state of Gujarat under the state’s modified industrial policy announced recently.
"Given the reputation of Gujarat as an industrial hub of the country, it is our pleasure to build our dream project in zinc here. With this facility, we will together take India to the map of most efficient producers of zinc in the world," said Agarwal on the zinc smelter project.
Meanwhile, HZL CEO Arun Misra said that the company plans to complete the Doswada unit by 2022. "This plant will not only create jobs for thousands of people in the state; but more importantly, will set a benchmark among industry as an environmentally-responsible and future-ready facility," Misra added.