Hindustan Zinc to invest Rs 350 crore to develop 200 MW renewable capacity

Mining firm Hindustan Zinc Limited (HZL) on Thursday said it will invest Rs 350 crore to develop up to 200 megawatt (MW) renewable energy capacity through a special purpose vehicle.

The project will be built under group captive norms on Build-Own-Operate (BOO) basis through a special purpose vehicle (SPV), HZL said in a statement.

HZL will own 26 per cent equity in the SPV with contributions of up to Rs 350 crore, it said.

"We have set an ambitious target for a 40 per cent reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050 by transitioning towards renewable energy. Towards this goal, we are happy to announce that the company has approved the proposal for entering a long-term group captive renewable power development plan up to a capacity of 200 MW," the statement said.

The company however did not divulge any details on the formation of SPV and the location for setting up the green energy capacity.

HZL CEO Arun Misra said: "I am elated that we are marching ahead in our ESG (Environmental, Social, and Governance) road map for the development of renewable power supply up to 200 MW. We stand committed to decarbonising its operations and transition to the production of green products of zinc and lead."

According to its website, Hindustan Zinc is a subsidiary of Vedanta Limited which owns 64.9 per cent stake in the company while the government of India holds 29.5 per cent equity.