Hindustan Zinc to invest ₹12,000 crore for new smelter in Rajasthan

Hindustan Zinc said that the new smelter and associated expansions are expected to be completed within 36 months. The investment will be funded through internal accruals and debt

Hindustan Zinc Limited (HZL) on Tuesday said its board has approved setting up a 250 kilo tonnes per annum (ktpa) integrated zinc metal complex at Debari, Rajasthan. The investment for the project is estimated at ₹12,000 crore.

 

In a regulatory filing, the company stated, “The Board of Directors of the Company at their Board meeting held today i.e., June 17, 2025, have approved setting up of 250 KT integrated zinc metal complex at Debari and associated mining and milling capacities at a capital expenditure of up to ₹12,000 crore, as part of the company’s overall 2X growth plan.”

 

The new smelter and associated expansions are expected to be completed within 36 months. The investment will be funded through internal accruals and debt, the company said.

 

 

As of the financial year 2025, HZL had a smelting capacity of 1,129 ktpa with a 93 per cent capacity utilisation. The proposed expansion is expected to raise the total capacity to 1,379 ktpa.

 

In a statement, CEO Arun Misra said: “We are excited to announce this 2X growth project towards doubling our capacity across zinc, lead and silver, which is strategically aligned with the country’s expanding economic landscape, increasing demand opportunities and keeping country self-reliant for zinc.”

 

Hindustan Zinc interim dividend

 

This comes almost a week after Hindustan Zinc announced that its board has approved the first interim dividend of ₹10 per share on a face value of ₹2 per share for FY26.

 

Hindustan Zinc Q4 FY25 result

 

Vedanta group-owned Hindustan Zinc posted a 47.4 per cent year-on-year increase in its consolidated net profit for the fourth quarter of FY25, reaching ₹3,003 crore. The growth was supported by higher operational revenue and reduced production costs.

 

Revenue from operations for the January–March period stood at ₹9,087 crore, marking a 20.4 per cent rise compared to the same quarter last year.

 

Shares of Hindustan Zinc last traded at ₹486.40 apiece on the BSE at the close of the market on Tuesday.