March 13, 2002

   The Parliamentary Standing Committee on Industry in its 64^th Report appreciated the Hindustan Zinc Limited management in general and employees of Debari Zinc Smelter and Vizag Electrolytic Zinc Smelter for commendable capacity utilization. The committee recommended that efforts be made for maximizing the capacity utilization of all HZL smelter since the measures taken would reduce the cost of production.

    The Committee is appreciative of the sales performance of HZL and recommended further efforts be made to enhance market share in domestic as well as international market.

    A committee noted that existing zinc production capacity has increased by 10,000 tpa at Debari Zinc Smelter and Zinc capacity has also been increased by 10,000 tpa at Vizag Smelter and recommended that all out efforts be made for installed capacity utilization. The committee hopes that the Nickel technology proving plant for recovery of Nickel from low grade lateritic chromite should perform as per expectations and contribute to the financial performance of HZL in a substantial manner.

    The committee was happy to note that the return on capital employed on HZL is to the tune of 26.33 percent. The fact that company is a zero debt company gave satisfaction to the committee. On the issue of capital restructuring of the company, the company said due care should be taken for evaluation of assets at current market value and adequate transparency be maintained. To innovate HZL, sufficient investment on research and development was also recommended.

    The committee, while appreciating the financial performance recommended the efforts be made to continue commendable financial performance of the company. The committee recommended that the Department of Mines should approach the Department of Public Enterprises for initiating necessary action for promoting HZL from the present status of "Mini-Ratna" to "Nav-Ratna".