March 14, 2002

    Parliamentary Standing Committee on Industry was informed by the Secretary Department of Mines that the Department has sought supplementary grant of Rs.85 crore loan for carrying out manufacturing operations of Hindustan Copper Limited with Rs. 250 crore Government guarantee.

    Parliament Committee in its 65^th report has stated that concrete steps for capital restructuring should be taken for ameliorating the company at the earliest in spite of the ongoing disinvestment process.

    Department of Mines and HCL management was asked to take steps to enable the company to harness further business through identification of viable mines/deposits, reduction in cost of production, interact with state government to provide power to the Units of HCL at viable rates and approach Ministry of Finance for rationalisation of tax structure. HCL should further rationalise its work-force in all units i.e KCC, ICC and MCP and take effective steps for cost reduction.

    HCL management was told to make efforts for producing metal in concentrates, refined copper (Cathode) and wire rod to the extent of installed capacity of plant in cost effective manner. The Sub-committee further recommended that HCL should undertake research projects for cost effective processing of low copper content in Ore and determine path breaking approaches for achieving economy of scales.

    On disinvestment issue, it said workers' interest should be protected and if the process takes more than six months, then the government should come forward with a revival plan.

    For improving the performance of company's units the committee suggested that HCL should take up development of Banwas deposits of Khetri Copper Complex and necessary support from the government be made available for modernisation of Kolihan mine and for increasing smelter capacity.