Zinc Giant Bets Big: Hindustan Zinc Clears ₹120 bn Debari Smelter—India’s Largest Green-Metal Push Yet

Image Source: BizzBuzz.news

Hindustan Zinc Ltd. has sanctioned a ₹120 billion ($1.44 bn) capex to build a 250-kilotonne-per-year integrated zinc metal complex at Debari, Rajasthan. The board-approved project will get underway this quarter and be mechanically completed in 36 months, underpinning Vedanta unit's sprint to double refined-metal capacity by FY29.

Key Highlights

Size & location – 250 ktpa smelter with on-site roaster, oxygen plant and 90 MW waste-heat power block on Debari's existing zinc campus.
Timeline – Build 30 months + 6 months commissioning; commercial ramp-up anticipated in Q4 FY28.
Allocation of capex – 55 % civil and mechanical, 25 % process equipment, 20 % environmental and digital automation; funded by internal accruals and low-cost debt.
Strategic alignment – Supports the overall $2.5 bn expansion plan of the company to increase the total metal production to 2 mtpa, which was announced in the previous year.
ESG advantage – Plant on 30 % renewable-power mix, zero-liquid discharge and slag cement co-processing, aligned with HZL's 2050 net-zero ambition. • Economic impact – 5,000 peak on-site employment; ₹1,200 cr annual GST contribution in full operation.
Market reaction – Stock edged 2 % up as traders welcomed long-term volume transparency despite near-term capex pull.

With this clearance, Hindustan Zinc gains dominance over Asia's galvanizing supply chain, with Rajasthan set to become the future hub for low-carbon alloys and battery-grade zinc.

Sources: Company exchange filing (17 Jun 2025)