Hindustan Zinc to enter wind power with Rs1,177 crore investment
23 November 2006Mumbai: Vedanta Resources group company Hindustan Zinc Ltd (HZL) is planning to set up three new projects involving total investments of Rs1,177 crore.
HZL board of directors have given their go-ahead to set up a debottlenecking project, installation of balancing equipments at mines and an additional 80 MW captive power plant at a capital outlay of Rs777 crore, the company said in a filing with the Bombay Stock Exchange.
The proposed debottlenecking, which is aimed at increasing metal production by 88,000 tonnes, will consolidate the company's position in the metal production business while the Rs777 crore investment in the power generation sector will see the company foraying into the emerging wind power generation business.
HZL is setting up wind power generation projects of up to 75 MW capacity in Gujarat and Karnataka at an estimated capital outlay of Rs400 crore. The projects are expected to be completed between the years 2007 and 2008.
The projects will be funded from internal accruals, the company said in its statement. HZL was formerly owned by the government, which divested its holdings through a public offer in 2002.