August 22, 2008

HZL to set up production unit in Uttarakhand

Mint reported that Vedanta Resources Plc’s subsidiary Hindustan Zinc Limited is planning to set up a 365,000 tonne unit at Hardwar in Uttarakhand to produce zinc ingots and galvanized grade alloys for the automobile and telecommunications tower sectors in a state that provides significant tax incentives for new factories. The project will cost between INR 200 crore and INR 230 crore.

The first phase will produce 210,000 tonnes of zinc ingots and begin operation by March 2008. Part of the unit will be dedicated to making CGG, or continuous galvanized grade alloys. The project is expected to employ up to 200 people. Some 385,000 tonnes of zinc cathodes will be transported from its Rajasthan plant.

State Infrastructure and Industrial Development Corporation of Uttaranchal offers a 100% tax holiday on central excise for 10 years and 5 years exemption from income tax. Large companies that are setting up plants will have to pay 30% income tax from the start of the fifth year, while small companies will have to pay 25% for the same period until the end of the term.