Surendra Kumar was very excited when he bought first car for his family, though on a comfortable EMIs. Every morning he would clean his car himself and would leave S for office. Months passed and Surendra was enjoying his car, coming late, going for the late evening drives and to hill stations for picnics. After few years, while he was returning from office, passing through heavy rains, he realized a dampness on the floor. The car floor-mats were not just wet but he also felt some rain water flowing inside from doors. Surendra was shocked as this was not expected from a car which was not that old.

Next morning he went to the showroom and complained about it. He was informed that the floor of the car and door was damaged due to rust, caused by water and pollution. One reason was also as Surendra was parking his car outside which was prone to humidity and pollution. But this is the way most of the car-owners park the cars.

Surendra was advised to replace both, the car floor and door, immediately, as this could further damage the car body. This is the story of most of the car owners in India as surprisingly almost
none of the cars manufacturer in India use galvanized steel in car body, causing early rusting and damages to the cars. Surendra had to shelve a heavy amount to get the car floor and door changed and he had to be mentally ready for the same issue after couple of years. Ironically, as the largest car purchases is by middle-segment of society, the importance of life of car is much needed. The issue of rusting of cars hurts this segment of society more than the car owners who buy high-end cars, which are generally galvanized and where the owners replace the car in short span of time.

Rusting in the car body is like cancer, often it is detected quite late and once detected, it is not easy to cure. Indian car manufacturers use about 3% galvanized steel for the cars manufactured and sold in the domestic Indian market. However, the same Indian car manufacturers use over 70% galvanized steel for the same models they export to markets in Europe, Asia and Africa and produced from the same stamping and assembly facilities. The car companies are not presently using galvanized steel for the domestic market because Indian consumers are not demanding it.
Apart from durability, treatment of steel used in automobile manufacture with zinc led to a better looking car body, reduced body weight, enhanced safety and resultant fuel efficiency. The problem is critical in terms of environment. Every 90 seconds across the world one tonne of steel turns into rust. Of every two tonnes of steel produced, one tonne is produced to replace rust. As per the reports, the overall loss due the corrosion is close to 3-4 % of India's GDP where part of it can be avoided by adopting the right technology at the planning stage.

It has been well documented in the literature that in the 1970's, the automotive industry in North America became increasingly concerned about the high incidence of car corrosion and body panel perforations leading to significant safety concerns. The major reason causing this unacceptably high rate of car body corrosion was the use of road deicing salts during winter and the increasing amount of industrial (acid rain) pollution.

Starting in the mid 1980's, the American Iron and Steel Institute (AISI) and the three major car makers, General Motors, Ford Motors and Chrysler Corporation, jointly participated in several parking lot corrosion survey of cars in the Detroit, Michigan area. Based on the results of this survey, as well as pressure from consumer advocates like Ralph Nader, the car companies converted from cold rolled to galvanized and galvanneal steel for the exterior, interior, and under-body parts.  improvements in base coat and clear coat paint technologies were also made concurrently. The results of subsequent surveys, after the introduction of galvanized steel, showed dramatic improvements which heralded the car companies issuing 10+ year warranties against corrosion starting in the mid 1980's. Europe, Japan and South Korea soon followed the North American
decision to use galvanized sheet steel for the entire car body.
In the summer of 2015, an extensive study of automotive body corrosion was conducted in Mumbai area by IIT Bombay to track corrosion performance of currently used materials of construction in Indian made cars costing less than Rs. 10 Lakhs.
The study used similar methodology to that used in North America to check for visible perforations, paint blisters, and surface red rust. The survey was conducted in several coastal and other humid regions of Mumbai. The results were surprisingly similar to those seen in the Detroit, Michigan survey despite the fact that no road deicing salts are used in Mumbai. The IIT report proved that there is a corrosion problem affecting the durability and the eventual safety of cars in India.
Indian car manufacturers use bare cold-rolled steel and its variants, while abroad it is mandatory for auto companies to use galvanized steel bodies.

Tata Steel, POSCO Maharashtra & JSW all have the facilities to produce exposed quality galvanized or galvanneal sheet to supply the automobile companies in India. There are no constraints in meeting the exposed quality steel demand required to convert all the parts from cold rolled to galvanized steel.
A new BIS Standard for Automotive steels is currently in final draft stage. The proposed Standard will require car companies manufacturing cars in India to use one of several zinc coated steel options for cars sold domestically. However, until this BIS Standard is officially released, car manufacturers are not obliged to use galvanized steel.

It is true that globally galvanized steel car bodies have been shown to experience minimal corrosion attack which protects the structural integrity and safety of the vehicle, improves the resale value, provides consumer protection due to anticipated warranty improvements by the car companies, lowers maintenance costs of underbody and structural components due to the use of zinc coated steel and saves consumers the costs of after-market anti corrosion treatments and annual inspections.
With due emphasis on 'Make in India', India is expected to become a major automobile manufacturing hub and the third largest market for automobiles by 2020, according to a report published by Deloitte. India is currently the seventh-largest automobiles producer in the world with an average annual production of 17.5 million vehicles, and is on way to become the fourth largest automotive market by volume in few years.

India is on the threshold of major reforms and is expected to rank amongst the world's top three growth economies and amongst the top three manufacturing destinations by 2020. India's manufacturing sector has evolved through several phases - from the initial industrialization to the current phase of global competitiveness.



During the pre-launch events of Resurgent Rajasthan Summit organised by Government of Rajasthan on 3rd November, 2015 in Jaipur, Hon'ble Chief Minister - Smt. Vasundhara Raje invited corporate to showcase their various Community Service Initiatives.
The first presentation among the corporate was given by Mr. Pavan Kaushik – Head Corporate Communication, HZL on 'Sakhi' and 'Sewage Treatment Plant'. An exhibition was also set up outside the venue during the event. Also present were Mr. Sunil Duggal - CEO, HZL and Mr. C.S.R. Mehta - Head Corporate Relations, HZL.


Hindustan Zinc celebrated successful completion of 2 years of Aarohan journey at all units on 29th October, 2015. Several activities like skit, poster making, selfie with Aarohan, video making, safety marching, cultural program, quiz, etc. were conducted during the celebration at all locations of Hindustan Zinc. Employees and contract workers actively took part in the event.
On the occasion of Aarohan 2nd Anniversary celebration, Employee Safety Passport was also released by Mr. Manoj Soni - Corporate CSM Head for all employees which will be having records of safety related training and other skill development training undertaken by employees.
Process Safety Management is one of the pillars of Aarohan journey. It is directed toward preventing serious, process related chemical incidents that might affect plant personnel, off-zone communities, environment or result in significant loss of property or business. It involves the application of systems and controls to manufacturing processes in a way that hazards are identified, understood and controlled so that process-related injuries and incidents are prevented.


Hindustan Zinc has received the 2nd Prize in the National Energy Conservation Award 2015 in the Thermal Power Stations Sector (Coal fired plants < 100 MW capacity) constituted by Bureau of Energy Efficiency, Ministry of Power, Govt. of India.
The award has been given for Hindustan Zinc’s Zawar Unit - 1x80 MW CPP-Zawar. The Award was presented by Shri Piyush Goyal - Hon’ble Minister of State (I/C) for Power, Coal and New & Renewable Energy, Govt. of India at the function held on National Energy Conservation Day at Vigyan Bhawan, New Delhi on 14th December, 2015. On behalf of Hindustan Zinc, the award was received by Mr. R.P. Mali - Head CPP, Zawar.


Hindustan Zinc received the Export Excellence Award for the year 2011-12 in Metal category. The Export Excellence Award was given by Hon'ble Home Minister of Rajasthan - Shri Gulab Ji Kataria and was received by Mr. Jayant Kumar - Dy. CMO, HZL on the behalf of Hindustan Zinc. The award function was held in Udaipur on 14th December, 2015.


Hindustan Zinc has received Outstanding Accomplishment Award for Corporate Excellence in the CII ITC Sustainability Award 2015. The award function was held in Delhi on 15th December, 2015. The award was presented by Dr. R.A. Mashelkar – Former Jury Chair & President Global Research Alliance and Mr. Shyam Saran - Jury Chair and Chairman of Research & Information System for developing countries. On behalf of Hindustan Zinc, the award was received by Mr. Akhilesh Shukla – Head CRDL, Mr. T.R. Gupta – Head Corporate Affairs (Delhi) and Mr. Prasad Giri – Engineer Environment.


Hindustan Zinc that completes its 50 years of existence on 10th January 2016, is India’s only the world’s leading integrated zinc-lead-silver producer

As Hindustan Zinc, a Vedanta Group company in Zinc-Lead-Silver business celebrates its Golden Jubilee, completing 50 years of its existence; the company is all set for its next phase of expansion of its mining and smelting operations with an investment of Rs.8000 crore.

Hindustan Zinc is looking to expand its all operations in a time-frame of 3-5 years, taking current ore production levels of 9.36 MTPA to 14.00 MTPA and finished metal production levels from 0.85 MTPA to 1.10 MTPA.

The Company has its mines located in Agucha, Sindesar Khurd, Zawar, Rajpura Dariba, and Kayad, all in Rajasthan.  The smelters are located in Dariba, Chanderiya and Debari, also in Rajasthan. 

Hindustan Zinc which was formed under an Act of Parliament on 10th January 1966 is India’s only and the world’s leading integrated zinc-lead-silver producing company.

Anil Agarwal, the Chairman of Vedanta Group, has expressed his happiness towards providing zinc sufficiency to India. “When we acquired Hindustan Zinc as part of Government disinvestment program in 2002, our focus was to make India self-sufficient in zinc. We are very proud that by adopting latest environment friendly technology, large investment in capacity expansions and continuous exploration, Hindustan Zinc is able to increase the production five-fold and yet have reserves for another 30 years”, he said.

The turning point came when in the year 2002, under the disinvestment program by the government, Hindustan Zinc was acquired by Sterlite. Since then, the company has grown multi-fold. The metal production capacity is 1 million tonne in the year today from about 200,000 tonne in 2002. The mine production capacity has also increased to 10.25 million tonne today from 3.45 million tonne in 2002.

The reserves and resources, which were 143.7 million tonnes in the year 2002 today stand at 375.1 million tonne after consuming reserves for about 14 years. The philosophy of the company on exploration has been to add equal reserve for every tonne of ore mined.

The investment of Rs. 12,000 crore in the past years have brought many changes in not just asset optimization but also building new facilities into the business to give value to the shareholders.  At the time of disinvestment, Hindustan Zinc did not have captive power generation or wind energy farms. Today the company produces 474 MW of captive thermal power and 274 MW of wind energy.

The turnover of the company has also seen a turn-around, from mere Rs. 1,200 crore in the year 2002 to more than Rs. 14,500 crore in the year 2014-15. The profit too has jumped from just Rs. 68 crore in the year 2002 to Rs. 8,178 crore in the year 2014-15.

The contribution to the exchequer has also seen significant change, which increased from Rs. 364 crore in the year 2002 to more than Rs. 5,000 crore in 2014-15.

“Though the zinc mining in India dates back to over 2500 years old, and the retorts of ancient mining can still be seen at Zawar, about 45 km from Udaipur; the zinc as a metal has been not much known or utilized in India. We are still exploring the new areas where zinc could add value to consumers and also add in the GDP of the country. We are exploring the possibilities of galvanizing of car bodies and structures to increase their life-span accordingly”, said Sunil Duggal, the Chief Executive Officer of Hindustan Zinc.

Hindustan Zinc is also looking to set-up a new Fertilizer Plant with a capacity to manufacture 0.5 MTPA of Di-Ammonium Phosphate in Debari in district Udaipur with an estimated investment of Rs. 1350 crores.

As the company celebrates its Golden Jubilee year, it is all set to invest another Rs. 8000 crore in the coming 3-5 years on expansions of its mines and smelting operations.


The story of Hindustan Zinc that celebrates its Golden Jubilee, from the days of PSU, to post disinvestment, a Vedanta Group company. A journey of a company that is the world’s leading integrated zinc producer today...

Zinc mining is not new in India. The traces of zinc mining in India can be seen at Zawar, about 40 kms from the city of lakes, Udaipur in Rajasthan. Zawarmala mine at Zawar is an ancient mine which as per the radio carbon dating is over 2500 years old. The ancient retorts can still be seen while going towards the Zawar mines. The history of Zinc-Lead production in India goes back to its roots in 1942 when a small Lead smelting pilot plant was set-up at Tundoo, near Dhanbad in Bihar.

In 1944 the Metal Corporation of India was formed and all the assets of the company were transferred to MCI. In 1945 Government of India surrendered the mining rights over Zawar to Mewar Durbar and in the same year Metal Corporation of India obtained the prospecting license for 2 years, and later got mining lease in 1950.

In 1960 Metal Corporation of India obtained license for production of 9,000 tonnes per annum of Lead and 540,000ozs of silver. In 1965 the Government of India proposed nationalization of Zinc-Lead mining and smelting, and an MCI was nationalized by an Act of Parliament.

It was 10th January 1966, a new era began, when Hindustan Zinc Limited was incorporated in Rajasthan and in the same year, foundation of Debari Smelter was also laid down, with a modest target of 18,000 tonnes per annum of Zinc. In 1972, 1st expansion programme of Hindustan Zinc launched to increase the capacity at Debari smelter.  Simultaneously Balaria mine at Zawar was also put on course to develop to meet the increasing requirement of zinc concentrate.
Year 1976, was a historical day when Hindustan Zinc posted a profit of Rs. 10 crore. In 1976 only, to give impetus to research and development, Hindustan Zinc established its Central Research & Development Laboratory (CRDL), and from this day, metal recoveries and optimization of waste became a priority.
In 1978, Vizag Smelter got commissioned and Zinc production started through imported concentrate. The year also saw commissioning of Balaria mine at Zawar. In 1978, the Agnigundla Lead mine was taken over from Hindustan Copper Limited with a production capacity of 300Tpd Lead – Zinc ore. This mine was closed in year 2002 because of unviable operation.

History was about to be unveiled for India when in 1979 origin of Rampura Agucha mine was traced. Hindustan Zinc acquired the mining rights of Rampura Agucha mine and in 1980 1st exploration hole at Rampura Agucha was performed. The feasibility report came in about 20 months and suggested development of 3000 tonnes of mining per day. Zinc-Lead mining in India was all set to make a mark in international market.

Sargipali Lead mine in Sundergarh district of Odisha was commissioned in the year 1983 with the production capacity of 500 tonnes per day Lead ore. Later on, it was closed in the year 2001 because of the exhaustion of the reserves. This also brought a challenge to expand the capacities of Zinc-Lead smelting operations. Meanwhile in 1984 Rajpura Dariba mine was also commissioned. 1989 was a historical year when production from Rampura Agucha was commissioned.

In 1991 Hindustan Zinc commissioned out its first blast furnace based on Pyro-Smelting Technology at Chanderiya. To match the growing demand of Zinc-Lead in India, Hindustan Zinc, in the year 1994, carried out the Pillar Blast at Mochia mine in Zawar.  The meticulously planned blast was one of the rare incidents not only for India but for the entire Asia.  8 major blasts were done during the span of 1986-2004 and the biggest blast was executed on 13th June 1994 that resulted in generation of 550,000 tonnes of ore.
It was also decided to develop Sindesar Khurd deposits, in the year 1997. In the same year a Zinc Smelter with a capacity of 60,000 to 100,000 tonnes was also planned. Mining probabilities at Ajmer district were also explored in the same year. History was again made in the year 1999 when Hindustan Zinc became a ‘debt free company’.

The journey from 1966 to 1999 has been a journey that laid the foundation of mechanised Zinc-Lead mining and smelting in India. But the world was moving ahead in production and capacities and it was time for the government to look for disinvestment in public sector units which had potential to grow further but were lacking due to funds and resources.

It was 10th April 2002 – a landmark decision privatized Hindustan Zinc and Sterlite Group was declared successful bidder for acquiring 26% equity in Hindustan Zinc. The result was evident, in the year 2003, Hindustan Zinc registered 113.58% growth in its profit. The journey for making Hindustan Zinc a world class asset had begun. In the year 2004, 35,000 tonnes of Zinc de-bottlenecking was completed at Chanderiya Smelting Complex.

Year 2005 was coming out to be an year of expansions and commissions. The year saw commissioning of Hydro-I Zinc Smelter at Chanderiya Smelting Complex with a production capacity of 170,000 tonnes per annum. Two captive power plants of 77 MW each were also commissioned during the same year and in the same year Rampura Agucha Mine was expanded from 2.30 Million tonnes per annum to 3.75 million tonnes per annum.

This expansion made Hindustan Zinc the world’s 3rd largest integrated zinc producer. An achievement that made the entire world look at India as the new leader in zinc production. To address the growing need for Lead in India, in the year 2006, the Company commissioned a 50,000 tonnes per annum Ausmelt Lead Smelter at Chanderiya Smelting Complex.

In the year 2007, Sindesar Khurd Mine began production with an initial capacity of 0.3 million tonne per annum. Another landmark decision surprised the world when Hindustan Zinc entered into green energy by commissioning 38.4 MW of Wind Energy Farms in Gujarat.

The production of zinc was all set to improve further when in the year 2008 Hindustan Zinc commissioned Hydro-II, and made a world record by commissioning a smelter in flat 20 months. Simultaneously Company also commissioned an 80 MW of captive power generation unit at Chanderiya. In the same year another 50,4 MW of wind energy farms were commissioned in Gujarat.

Year 2009 again became a historical year for expansions. Rampura Agucha mine this year got expanded to 5.00 million tonnes per annum from 3.75 million tonne capacity. Debottlenecking at Chanderiya and Debari increased metal production capacity by 88,000 tonnes per annum. The year also increased Company’s thermal power generation capacity for captive use by commissioning of 80 MW Captive Power Plant at Zawar. Wind energy farms get another commissioning with 34.4 MW, taking the total capacity to 123.2 MW. The year 2009 made Hindustan Zinc the World’s 2nd Largest Integrated Zinc Producer.

The growing international demand for Zinc-Lead made Hindustan Zinc successfully complete another expansion phase. In the year 2010 the Company further expanded its mining capacity to 6.00 Million tonnes per annum at Rampura Agucha from 5.00 Million tonnes. With this the mining capacities of Hindustan Zinc increased to 8.40 million tonnes per annum.

With growing mining activity it was necessary to also increase the smelting capacities. Hydro-III with 210,000 tonnes per annum was commission at Rajpura Dariba. With this the metal production capacity increased to 964,000 tonnes per annum, which included 879,000 of zinc and 85,000 of lead.
2010 was the was the year when Hindustan Zinc became a world leader, the world’s largest Integrated Zinc Producing company, a strategic and landmark position for India. The company carried out a first ever intensive Heliborne Survey in 2010.

In the year 2011, 2.00Mtpa capacity silver-rich Sindesar Khurd mine got commissioned, bringing a new ray of hope in Silver production and underground mining technology in India. To give support to Dariba Zinc Smelter, the company commissioned 160 MW of thermal power units. Wind energy was also increased by 48.7 MW. To give further focus to Lead production, Hindustan Zinc commission 100,000 tonnes per annum Lead Smelter at Dariba, increasing the Lead production capacity to 185,000 tonnes per annum. 

The wind energy got a further boost by commission of 101.6 MW wind farms and now the project included states of Rajasthan, Maharashtra, Tamil Nadu, and Karnataka besides Gujarat, taking the wind power generation capacity to about 273.5 MW. With growing need for underground mining at Rampura Agucha, in the Year 2012, the company started developing underground mining work at Rampura Agucha and simultaneously green-field Kayar mine.

In the year 2013 the production of developmental ore from Rampura Agucha underground mine and Kayad underground mine started. The company also initiated the expansion work at other mines.Recently Hindustan Zinc has signed MoU with the Rajasthan Government under the Resurgent Rajasthan to invest Rs 8,357 crore in the next 3-5 years towards expansion of its mines and smelting capacities.

The target is set for the future to increase mine production to 12.80 million tonne from the current level of 9.09 million tonne per annum, and finished metal production to 1.028 million tonne from current level of 0.85 million tonne per annum.

14,000 people work in Hindustan Zinc today which has about 20% female employees (in fresh intake). The focus is on state-of-the-art environment friendly technology, a strong vendor-supplier base, and a strong foot in Indian Zinc-Lead market with over 80% domestic market share. Sustainability and care for the community is on utmost priority. Speak to the people who have worked in the past or working at present for the Company, and they would instantly say, ‘they own the company’.


Hindustan Zinc received prestigious Greentech CSR Gold Award during the 5th Annual Greentech CSR Award 2015 on 28th November, 2015 held at International Convention Centre, Hyderabad. Every year, this award is given to corporate for their community service initiatives. On behalf of Hindustan Zinc, the award was received by Mr. Jawaid Ahsan – AM, CSR.


Chanderiya Smelting Complex has received Sustainable Business of the Year Award 2015 in the India Sustainability Leadership Summit & Awards 2015 conducted by World CSR Day & World CSR Congress on 26th November, 2015 at Hotel Taj Lands End, Mumbai. On behalf of Hindustan Zinc, the award was received by Mr. Rajesh Yadav – CSO, CSC.


Rajpura Dariba Complex received the Gold Award and First Runner-up Trophy in the National awards for Manufacturing Competitiveness 2014-15 by International Research Institute for Manufacturing, India. The award was given on 7th August, 2015 in an event organised at ITC Grand Chola, Chennai in recognition  for the sustainable & manufacturing practices.


Sindesar Khurd Mine has been awarded with Abheraj Baldota Health & Safety Award for year 2014-15 by the Federation of Indian Mineral Industries (FIMI) for its best practices, unique features and innovative processes adopted by the Mine. The award was presented by Mr. Vishnu Deo Sai - Hon'ble Minister of State for Steel and Mines, Govt. of India during 49th Annual General Meeting of FIMI at Eros Hotel, New Delhi on 24th August, 2015. The award was received by Mr. L.S. Shekhawat - COO, Mines, Mr. Rajendra Dashora - Location Head, RDC, Mr. Rajeev Bora - Unit Head, SKM and Mr. R.K. Agarwal - Head Electrical, SKM. The ceremony was graced by Secretary Mines, Govt. of India, senior govt. officials and mining professionals of leading companies across India.


Shri Anil Agarwal - Chairman, Vedanta Group visited Jaipur Engineering College and Research Centre, Jaipur on 18th November, 2015. During his visit, he addressed more than 1500 students and faculty members of the institute. While interacting with the students, he spoke about the utilisation of natural resources and its importance in improving the GDP, national income and export. He also gave his views on how to reduce the import bill and laid his emphasis on how crucial it is to eradicate poverty and generate employment for development of the country.


Resources and infra are two areas where we need investment. We are dependent on imports, which amount to $600 b. In today's world, technology and capital is available. We need to simplify investment regime to get large investments

Anil Agarwal, Chairman of diversified resources major Vedanta Resources, still retains enough gumption to invest big in India, in spite of the searing slump in commodities and hurdles in getting regulatory approvals for mining. His Lanjigarh refinery in Odisha is working at a quarter of its production capacity and Chinese aluminium is killing the industry. However, he insists that his company is better-placed as it figures in the first quartile of production costs. He mentions a "few pinpricks", such as the delay in obtaining clearances and on retrospective taxes, and argues that “For Make in India, weneed to facilitate 'Find in India' and 'Mine in India'. In spite of the obstacles, his group is lining up . 20,500 crore of investments in Rajasthan in the next 3-5 years. Mr. Agarwal spoke to Ms. Rakhi Mazumdar and Mr. Satish John in a conference call from London, a day after he attended a meeting that top global CEOs had with Hon'ble Prime Minister Shri Narendra Modi during his visit to UK. Edited excerpts:

How did the meeting fare with the PM?
By and large Britain had done everything possible to welcome the PM. On both sides it was a huge delegation. It has been taken very well. While there were a few pinpricks like the retrospective tax, delay in getting clearances etc. they welcomed opening up of FDI in various sectors. The British PM, David Cameron, was around all the time while the PM was in London. India's reassurance on retro tax was well received. What is needed to boost FDI was also discussed. Vedanta has made the highest FDI in India -$30 billion in 10 years -while on India's side, the Tatas are the largest investor and employer in the UK.

You mentioned recently that the government should be nimbler and faster in decision-making. Can you elaborate?
Two things come to mind. We are a resource-based country. Resources and infrastructure are the two areas where we need investment. We are dependent on imports, which amount to around $600 billion. In today's world, technology and capital is available. We need to simplify our investment regime to get large investments.India needs 10 companies like Vedanta in resources, oil & gas, iron ore, gold, etc. The new MMDR Act is geared towards that. All we need is to have revenue sharing and a policy of self-certification with heavy penalty in case of any wrongdoing. We have to compare ourselves with China. We consume only 10% of what they do with a similar population size. That indicates the kind of growth potential that exists in India when we open up. For Make in India, we need to have `Find in India' and `Mine in India'. Mining is the biggest employer in the long term. Similarly, with the kind of infrastructure we have to build, there is huge employment generation that is possible. A country of 1.25 billion people needs to develop its own resources and infrastructure. Look at oil and gas. We do not have global majors like Shell, ExxonMobil, or a Total here. But they are present in Myanmar. While many buildings are coming up, we do not have proper sewerage, highways, roads, or enough electricity.Overall, we need to simplify things and also develop a sense of urgency to get things done.

How has the downturn in commodity markets impacted resource majors like the Vedanta Group? Can you share details about issues being faced in businesses like aluminium, zinc and oil & gas?
Prices have fallen in the downturn. However, we are in the first quartile of the cost of production curve. Also, we are in the process of reducing our cost of production further. We are India-based, where consumption is good; we have a balanced portfolio with aluminium, copper, zinc, iron ore and oil & gas.
I will go one by one. Aluminium is a natural product for India, given our large reserves of bauxite and coal. We should be able to be the lowest cost producer of aluminium. That can create jobs and remove poverty. We should focus on developing `semis' under Make in India since processing of aluminium can give rise to hundreds of industries. For example, around 500 kg of aluminium goes into each car, in components like die castings, radiators, etc. Aluminium can boost Make in India in a big way. We have a large 3 million tonne (mt) capacity in aluminium in India, which we are operating at 40% capacity now. We are looking at getting bauxite to raise capacity utilisation. In zinc and lead and silver, in which we are one of largest producers at Hindustan Zinc, we raised capacity more than 10-fold in the last 12-13 years from 1.5 lakh tonne. In Goa, iron ore mining resumed after a three-and-half-year shutdown. Two things are hurting us. Prices have fallen to such an extent. We also expect the government to abolish the 10% tax on exports of low-grade ore. The government should provide more room for exploration. A liberal exploration policy will also generate self-employment. We need ten times more than what we are doing today. In oil & gas, ONGC produces 6 lakh barrels, we produce 3 lakh barrels which we will enhance to 5 lakh barrels in both on shore and off shore at an investment of $10 billion.

When do you see commodity cycles changing course for a recovery in prices?
While in (case of) iron and oil, prices may come up by 15-20%. However, it is likely to remain at that level thereafter.

There have been very few greenfield projects that are coming up in India. Why are industrialists hesitating from investing in greenfield projects (like Lanjigarh)? What will give them confidence?
It is true that industry today has less courage for new sites. The interest rates are very high and that makes projects unviable. I don't know the answer. The trend is nobody has the mood or the zeal to start a new investment. After all, the existing one has to run healthily. However, it is a question of time. Large capacities have to come up in every sector, government has to get it either through public, private or investment by multinational companies. In iron ore, for instance, we have tremendous potential. We have the same geology as in Australia. While the latter developed its iron ore and survived on it, we produce only 100 mt whereas our capacity is to produce 600 mt.Once we get going, it won't take time to reach that volume. However, in India, royalty and taxes are amongst the highest in the world.

What is the status at Lanjigarh?
In Lanjigarh, our refinery is at the base of the bauxite reserve. We are operating it at 25% capacity. We are importing bauxite to run it, while we have given up our rights to the mine which is now owned by Odisha Mining Corp and the Odisha government. It has to be used sometime or the other. If it has to be used, we need the consent of the people. Hopefully, we will get it sooner or later.

The Vedanta Group has lined up 20,500 crore in fresh investments in the next 3-5 years in Rajasthan. Do you think it is the right time to invest there? You are also talking of investing in potash.
We have already invested in zinc and oil & gas business there. Apart from expanding our capacity in zinc and oil, we also hope to develop fertilisers since they have rock phosphate and we already produce sulphuric acid. The state has tremendous resource potential in oil & gas, rock phosphate, potash and marble. In marble, the potential is much more than even Italy which has large quarries employing 10,000 people who cut and polish the stone at same site. As part of Resurgent Rajasthan, the chief minister is calling on investors and has received good response. The Centre has allowed states to do the mineral auctions and it can be done for potash, limestone, marble and also gold of which it has good reserves. In case of potash, we need $4-5 billion investment since we import our entire requirement. The state will also benefit from a liberal exploration policy.

Will you enlist a technology partner for the fertiliser project?
We have not come to that stage yet. We have people who run these businesses and work for us from the likes of Rio Tinto, Anglo American, BHP and others, and can approach them in case we need to take on a technology partner.

How big a problem is dumping of aluminium?
Some 55% of aluminium coming into India is being dumped mainly by China. We need to have safeguard duty in place soon and increase the import duty to protect the domestic industry. In steel, 10% is being dumped and it already has a safeguard duty.

By when do you expect the Cairn-Vedanta merger to come through?
Some shareholders have called for a review. Our vision is to create a fully merged natural resources firm from India. We have moved in a transparent manner. The process is going on and if anything is required, the bankers will recommend it. It should take couple of months.


Focus on expansion of Zinc-Lead mines
and oil recovery, leading to substantive
employment generation

With a focus on Resurgent Rajasthan Summit held in Jaipur on 19th -20th November, 2015, Vedanta has signed MoUs to invest over Rs. 20,000 crore for the expansion of zinc-lead mines and its oil business in Rajasthan.
Vedanta's company Hindustan Zinc signed MoU on 5th May, 2015 in Jaipur to invest Rs. 8,357 crore for the development and expansions of new and existing zinc-lead ore mines & smelters in the districts of Udaipur, Rajsamand, Chittorgarh,
Bhilwara and Ajmer and installation of new Fertilizer Plant. Hindustan Zinc has already invested close to Rs. 12,000 crore in its business in Rajasthan.
Hindustan Zinc is looking to expand its current mine production from 9.09 MTPA to 12.80 MTPA and finished metal production from 0.85 MTPA to 1.028 MTPA.
Hindustan Zinc has mines located in Rampura Agucha, Sindesar Khurd, Zawar, Rajpura Dariba and Kayad, all in Rajasthan. The smelters of the company are located in Dariba, Chanderiya and Debari also in Rajasthan. Hindustan Zinc is looking to expand its all underground mines.
The new Fertilizer Plant to be commissioned will manufacture 0.5 MTPA of Di-Ammonium Phosphate in Debari in district Udaipur with an estimated investment of Rs. 1350 crores. The company intends to implement the Project in a period of next 3 years. This further investment would generate additional employment opportunities for more than 7000 people.
From Hindustan Zinc the MoU was signed by Mr. Sunil Duggal - Chief Executive Officer, HZL and from Rajasthan Government, the MoU was signed by Mr. Deepak Upreti – Principle Secretary, Mines & Petroleum Department, Government of Rajasthan. The MoU was signed in the presence of Mr. Narendra Singh Tomar – Union Minister of Steel & Mines, Government of India who was the Chief Guest, Mr. Piyush Goel – Hon'ble Minister of State (I/C) for Power, Coal and Renewal Energy, Government of India, Smt. Vasundhara Raje – Hon'ble Chief Minister of Rajasthan and Mr. Rajkumar Rinwa – Minister for Mines, Forest & Environment Department, Government of Rajasthan.

Hindustan Zinc has been working closely with the Rajasthan Government, not just towards expanding business operations, but also for social projects. Hindustan Zinc has signed the MoU today with the Rajasthan Government worth Rs. 8,357 crore to be
invested in coming three years. We would be expanding our mines and smelters and also propose to set-up a fertilizer plant in Rajasthan
Sunil Duggal, Chief Executive Officer, Hindustan Zinc

Vedanta's another company in Rajasthan, Cairn India signed the MoU for investing Rs. 12,500 crore over the next 3 years. Cairn India is the largest investor in Rajasthan, producing crude oil to the order of 175,000 bbls/day and natural gas about 3 lac cubic meter per day for supplying to GNFC, Gujarat from three Petroleum Mining Lease areas.
Cairn India would be developing Mangla-Bhagyam extended oil recovery polymer, Mangla-Aishwariya in-fills, setting up Sulphate Removal Plant, and developing RGD Field which lays the foundation for sustainable gas production.
Cairn India will undertake these Projects in Barmer & Jalore districts of Rajasthan and these projects will generate substantial sustainable direct and indirect employment.